4 ms·
'very little risk' - I think standard deviation of return on S&P is something like 15%-20%...I wouldn't define a strategy with a buffer of 2.7% very little risk
by r2d2-c3po 8y ago
'very little risk' - I think standard deviation of return on S&P is something like 15%-20%...I wouldn't define a strategy with a buffer of 2.7% very little risk when the standard deviation is that high...
- User23 8y agoVariance is not risk. https://www.ncbi.nlm.nih.gov/pubmed/18554271 https://www.ncbi.nlm.nih.gov/pubmed/18554271
- tempestn 8y agoNo, but variance causes risk when you're borrowing to invest and need a certain level of return to continue servicing that debt.
- soared 8y agoPasted from another comment: I don't know more than the basics, my thought was if you pocket $2b/year and invest it, you have $13B+ in 10 years (plus your own $28b you've invested that I didn't include). So $40B to whether a storm every 10 years seems reasonable.