4 ms·
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.
by 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 agothe 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 agoIf 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.