Tag Archives | standard deviation

Rebalancing? How does it work?

Rebalancing is a portfolio management tool designed to get your portfolio back to your original target. Why? Because with time your allocation drifts and you take on a different risk profile with a different portfolio allocation. Let’s assume you are not investing in individual stocks (which may go to zero for a complete loss). Instead you […]

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What is Risk and Standard Deviation?

Risk and Return. Let us imagine the markets like highway driving. All lanes go to the same place. It’s just a matter of how fast, or slow, you want to go to get there. Faster lanes arrive sooner, but have a higher risk that something happens and you end up getting there later than a […]

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