There is an old saying: “Higher the risk, higher should be the expected returns in the equity markets.” This quote can be interpreted in several different ways by different investors. But on a more practical level, what happens is that the minimum returns go to passive investors who have safety on their agenda and would not like to be the cheerleaders of market volatility and variability. Maximum returns are realised by those who observe the market moods closely and are alert while exercising their intelligence and investing skills.
One may thus notice that mere high risk-taking activity does not guarantee maximum returns contrary to the simplistic view of greater the risk, greater are the returns, as followed by several novice investors. The returns will be maximised if the game of portfolio management is understood holistically and enough skill is possessed by the investor to manage the portfolio in such a way that returns are optimised.
Importance of Beta
هذه القصة مأخوذة من طبعة May 11, 2020 من Dalal Street Investment Journal.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
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هذه القصة مأخوذة من طبعة May 11, 2020 من Dalal Street Investment Journal.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
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