I'm Not Buying Stocks As Before - Why?
The natural sciences have laws that guide everything and make it easier to predict an outcome when certain actions are taken. For example, it's possible to calculate the time it would take a car traveling at a certain speed to cover a specific distance. Many such things have already been demonstrated to us by the giants of the past. Sometimes, however, you have to self-critique and "checkmate" yourself. Many are told to take it easy on themselves, but when you're really growing, being hard on yourself is not necessarily a bad thing. Image by Google Gemini There's a vast literature of empirical evidence that now tells us how accurate this is. Please ignore or skip the equation below if you hated math back in school and still hate it to this day lol. This equation is simply saying that your expected investment returns are the sum of the risk-free rate plus the extra return you get for taking on market risk. The "Beta of the portfolio" is simply what you...