Question
Based on the WCRS screenshot below, if at the end of 2013 you had invested an equal weighted portion of $100,000 in NVIDIA and nine
Based on the WCRS screenshot below, if at the end of 2013 you had invested an equal weighted portion of
$100,000
in NVIDIA and nine other companies that went bankrupt, how would your performance compare to the SPX return at this time, and what does this-imply about the nature of stock market returns?\ You would haye performed roughly the same as the SPX. This illustrates the even synmetry of the - market, with winhers and losers equally offsetting each other.\ You would have underperformed the SPX by approximately
746%
. This demonstrates the negative asymmetry of stock market returns: You would have outperformed the SPX by over
1000%
. This exemplifies the positive asymmetry of stock market returns. asymmetry of stock market returns.
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