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4,879 Posts.
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27/02/18
01:47
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True - you must have bought this very cheap....
The difference though is volatility, which is a measure of risk.
We've got equal returns for completely differing risk profiles.
Portfolio theory suggests you don't just want the best return, but the best return per unit of risk (measured by volatility).
Applying portfolio theory to your nomenclature, for a stock with an equal return:
Trash = high volatility
Treasure = low volatility
Let's discuss performance in another year?
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