SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : PRESIDENT GEORGE W. BUSH

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: George Coyne who wrote (670106)1/28/2005 3:37:36 PM
From: DuckTapeSunroof  Read Replies (2) of 769670
 
"limited options will limit the POTENTIAL large gains, but more importantly, they will substantially reduce the long term downside risk!"

No, limited options DON'T 'reduce risk', they INCREASE risk.

That is the very basis for Modern Portfolio Theory (otherwise known as 'don't have all your eggs in one, or just a few, baskets'), for which the Nobel Prize in Economics was granted.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext