3 ms·
True but you are taking say a -30% loss risk for only 0.5% expected return. I don’t think any risk manager is going to be very comfortable with that risk/reward
by cm2187 7y ago
True but you are taking say a -30% loss risk for only 0.5% expected return. I don’t think any risk manager is going to be very comfortable with that risk/reward.
- HPsquared 7y agoCash might have a similar risk (inflation).
- xvilka 7y agoJust use dynamic hedging, risks will be smaller.
- chii 7y ago> -30% loss risk for only 0.5% expected return. vs the alternative - a guaranteed loss of 4%? And the expectation of only 0.5% return is only going to be short term. Long term recovery is a good bet imho.