Here’s another riddle that may help everyone understand this contest:
There are two brokers John and Calvin. John has two clients. Calvin has two clients. John’s first client Jack gives John 10,000 to invest for one month. John’s second client Jason gives John 5,000 dollars to invest for one month. Calvin’s first client Cobb gives Calvin 10,000 to invest for one month. Calvin’s second client Cole gives Calvin 1,000 to invest for one month. At the end of the month Jack closes his account it had 12,000 dollars in it. Jason closes his account it had 7,500 dollars in it. Cobb closes his account it had 12,000 dollars in it. And Cole closes his account it had 2,000 dollars in it. So John made his clients a total profit of 4,500 dollars and Calvin made his clients a total profit of 3,000 dollars. Which broker did the best job overall for his clients???
To add to your confusion if John and Calvin had started SI PORTFOLIO'S to track their investments then John's total return for the month would have been +30% and Calvin's return would have been +27.2%.
It should be obvious to everyone that Calvin actually is the best broker. Why, simply because each broker did the same for their first clients, but John only did a 50% gain for his second client and Calvin did a 100% gain for his second client.
Does anybody get this yet? |
