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It doesn’t work like that. If their alternate investment had gone bankrupt, they would have lost everything instead. Nobody has a right to a risk-free rate of r
by URSpider94 8y ago
It doesn’t work like that. If their alternate investment had gone bankrupt, they would have lost everything instead. Nobody has a right to a risk-free rate of return, if they are chasing higher-risk return rates.
Giving everyone back their capital is about as even-handed as you’re going to get.
- sokoloff 8y agoIf I invested $100 in 1700 and you invested $100 5 minutes ago, my investment was a greater sum in today's money, IMO. Doesn't matter if we both invested in T-bills (or war bonds), corporate bonds, or equities.