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Batten down the hatches... The waters are about to get rough
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<p>[QUOTE="medoraman, post: 2560025, member: 26302"]I believe if you look at total return volatility, (if you buy into the notion that volatility equates to risk, which I do not totally but another discussion), you would find including a small amount of unrelated assets to your portfolio has the tendency to either reduce volatility for the same expected returns, or increase returns for the same expected volatility. Basic portfolio building stuff. Like I said, not a huge fan of CAPM theory, but its the dominant theory.[/QUOTE]</p><p><br /></p>
[QUOTE="medoraman, post: 2560025, member: 26302"]I believe if you look at total return volatility, (if you buy into the notion that volatility equates to risk, which I do not totally but another discussion), you would find including a small amount of unrelated assets to your portfolio has the tendency to either reduce volatility for the same expected returns, or increase returns for the same expected volatility. Basic portfolio building stuff. Like I said, not a huge fan of CAPM theory, but its the dominant theory.[/QUOTE]
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Batten down the hatches... The waters are about to get rough
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