Re:Robinhood Crypto – Invest in Bitcoin and other cryptocurr...
by ZitchDog on Thursday January 25, 2018 @01:00PM
(#16232922)
Wouldn't this expectation be built into the current price of the stock?
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Re:Robinhood Crypto – Invest in Bitcoin and other cryptocurr...
by paulgb on Thursday January 25, 2018 @01:07PM
(#16232987)
Yes, but money in the future is valued at a discount today. So even if an asset is 100% sure to be worth $100 a year from today, the market will value it at slightly less than that because there's no sense tying up $100 in capital for a year unless you get some profit in return.
Re:Robinhood Crypto – Invest in Bitcoin and other cryptocurr...
by brokensegue on Thursday January 25, 2018 @01:17PM
(#16233080)
the risk you take for those returns means the price won't fully match the expectation. but you can mitigate that risk via diversification.