As the Wall Street Journal discusses today, you need larger returns to get back to where you were before your portfolio suffered a loss.
The math is simple. Start with $100. Loose 50%. You've now got $50. To get back to $100 you need a 100% return.
Of course, you can get back quicker if you save more.
A Finance Professor's blog. I am a Professor of Finance in the Poole College of Management at NC State University. My website: https://sites.google.com/ncsu.edu/warr Opinions are my own.
Subscribe to:
Post Comments (Atom)
What's going on with inflation?
I recently posted an article on the Poole College Thought Leadership page titled: " What's going on with inflation?" . This w...
-
I recently posted an article on the Poole College Thought Leadership page titled: " What's going on with inflation?" . This w...
-
Another inflation illusion post. This time with math. Again the issue here is that you can't just increase the discount rate when you a...
-
Sometimes I come across an academic research paper that is just so interesting I feel compelled to share it with my MBA students. This is o...
No comments:
Post a Comment