Understanding Volatility

If you’ve ever paddled a canoe on a calm lake only to get caught in a sudden squall of rough waves, then you’ve experienced volatility. When it comes to investing, volatility occurs when a “storm” develops rapidly and sends prices shooting up or down in a dramatic fashion.

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How to Choose the Right Benchmark When Measuring Performance

The question on every investor’s mind is: How am I doing? We all want to know how our investments are performing. There may also be a competitive desire to “beat the market”. The way to answer the question is with benchmarks.

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Risk/Return Trade-Off: True or False?

One enduring belief in investing is the trade-off between risk and reward. Yet, empirical studies show that taking excessive market risk either has no, or actually, a negative correlation to total investment return. There is even a name for this phenomenon: “the low volatility anomaly.”

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