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Comment on and answer the below statements: Some long-term investors argue that they dont need to worry about risk because they do not intend to
- Comment on and answer the below statements:
- Some long-term investors argue that they dont need to worry about risk because they do not intend to make any withdrawals from their portfolio for a very long time.
- Can you think of why a high volatility environment is good for a trading business but is most likely not best for a long term investing portfolio?
- Some long-term investors argue that they dont need to worry about risk because they do not intend to make any withdrawals from their portfolio for a very long time.
- Can you think of why a high volatility environment is good for a trading business but is most likely not best for a long term investing portfolio?
A portfolio consisting of two assets has a correlation coefficient of 0.8. Another two-asset portfolio has a correlation coefficient of -0.8. In the absence of any other information, which portfolio should you invest in? Justify your reasoning
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