Investments in risky portfolios do not become safer in the long run. On the contrary, the longer

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Investments in risky portfolios do not become safer in the long run. On the contrary, the longer a risky investment is held, the greater the risk. The basis of the argument that stocks are safe in the long run is the fact that the probability of an investment shortfall becomes smaller. However, probability of shortfall is an incomplete measure of the safety of an investment because it ignores the magnitude of possible losses. p-963

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ISE Investments

ISBN: 9781266085963

13th International Edition

Authors: Zvi Bodie, Alex Kane, Alan Marcus

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