4 ms·

its my understanding that its the sp500 that is very difficult to beat in the long run. Is that not correct?

• kruhft 9y ago
  The SP is not the 'risk free rate of return', but yes, it can be difficult to beat in the long run overall by individuals.
  • autokad 9y ago
    the risk free rate is not the best return. this is widely known. it is easy to beat the risk free rate, even if I take losses some years, I would destroy it in most others.
    • kruhft 9y ago
      'I' does not mean all. Individuals can, but overall, the net gains by all players is the risk free rate.
      • valuearb 9y ago
        If you actually passed that course the professor should have their tenure revoked. The S&P500 rate is a rough proxy for the return on invested capital in the country, and it always crushes the risk fee rate over time. I’ll give you a hint that may open your eyes. Volatility is not risk.