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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: DMaA who wrote (23450)	6/5/2013 1:32:55 PM
From: ahhaha	Read Replies (3) \| Respond to of 24758

From, dept.econ.yorku.ca/jasiakj/4140/lecture3.pdf? found by entering "interior decorator fallacy modern portfolio theory". This lecture is a good presentation of MPT. It gets a little technical but very gradually. Nothing you can't understand. Well worth investigating. I recommend it to everyone. At least then people can discuss more econometric notions with me. I can't even delve into all that here, and all that has 99% of academic and institutional attention. The Interior decorator fallacy It is often thought that a stock portfolio should be tailored to the financial circumstances of a client. Bernstein, in "Capital Ideas" , calls this the “interior decorator fallacy.” Example: a woman in her forties married to a clergyman with a modest income. inherited money which she wanted to invest. Bernstein recommended stocks with good growth potential but low dividends, e.g., Georgia Pacific, IBM, and Gillette. The client was worried that these were too risky. Bernstein reasoned that even someone with modest means should benefit from the long-term growth potential...