Re:The Rate of Return on Everything, 1870–2015 [pdf]
by autokad on Friday January 05, 2018 @11:31AM
(#16079581)
the risk free rate is not the best return. this is widely known. it is easy to beat the risk free rate, even if I take losses some years, I would destroy it in most others.
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Re:The Rate of Return on Everything, 1870–2015 [pdf]
by kruhft on Friday January 05, 2018 @01:04PM
(#16080281)
'I' does not mean all.
Individuals can, but overall, the net gains by all players is the risk free rate.
Re:The Rate of Return on Everything, 1870–2015 [pdf]
by valuearb on Friday January 05, 2018 @02:41PM
(#16081038)
If you actually passed that course the professor should have their tenure revoked. The S&P500 rate is a rough proxy for the return on invested capital in the country, and it always crushes the risk fee rate over time.
I’ll give you a hint that may open your eyes. Volatility is not risk.