Join our investing community

Understanding Investment Risk and Volatility

Discussion in 'General Investing Discussion' started by Tropo, 1st Sep, 2008.

  1. Tropo

    Tropo Well-Known Member

    Joined:
    17th Aug, 2005
    Posts:
    3,396
    Location:
    NSW
    Understanding Investment Risk and Volatility
    Understanding Investment and Volatility - - best tool to reduce Risk is Knowledge


    “............another easy example would be a gain of +100 percent, and a negative 50%. This gives an apparent average gain of 25%, but the net return is actually zero.
    Financial advisors and newsletters take advantage of this all the time. That's why they almost always advertise average annual gains instead of compounded annual returns, as the numbers always look better.
    Keep that in mind the next time you get some advertisement that suggests huge annual returns”.

    More ..... Volatility Definition - How to Calculate Volatility
     
  2. Mark Laszczuk

    Mark Laszczuk Well-Known Member

    Joined:
    16th Aug, 2005
    Posts:
    793
    Location:
    Brisbane
    Good articles Tropo. A timely reminder that there is often a lot of stuff going on in the background that we as investors all need to be aware of.

    Mark