FYInance

Posts Tagged ‘Picks’

IFA.com – http – The random walk of stock market prices and the efficient market hypothesis is simulated by physical action of beads hitting a pattern of pins. The Efficient Market Hypothesis says prices are fair. If the expected return of an investment is 1% per month, about half the monthly returns will below and above that average return. So the fair price set at the beginning of each month sets the chance that future returns will be 50% higher and 50% lower than the expected return. The further the returns deviate from the average, the less likely they are to occur. The red bar overlay represents 600 simulated monthly returns of ifa’s Index Portfolio 100. As you can see the distribution of the beads is similar to the index portfolio.

If you're new to FYInance, we're going to make it worth your while to subscribe to our FYInance RSS feed. It will keep you up to date, on your terms!

“Portfolio Risk Management” is an important part of your overall risk mangagement skill set. See all our stock trading lessons on YouTube or at www.GoldenTicker.com for a clearer picture.

Visit www.PortfolioCrafter.com to discover * The ultimate trading advantage only a small clique of smart traders knew about until now. * How to trade stocks… without… the time-consuming research, monitoring the market minute by minute… or… analyzing complex charts. In fact, you dont have to do any of the tedious work 99% of traders suffer through. * What savvy investors do to eliminate the agonizing stress and uncertainty of trading stocks. This is how easy money is made in the …

(5/19/09) Selected Findings of Study: The cumulative return for this portfolio for the entire period is 31.75%, or an annualized return of 12.09%…The S&P 500 earned 18.72%, or 7.35% annualized over the same period. The Russell 1000 Growth and Value indexes earned 24.54% (9.51% annualized) and 24.77% (9.59% annualized), respectively. The Russell 2000 Growth and Value indexes earned 22.51% (8.76% annualized) and 9.39% (3.78% annualized), respectively. Thus, the Cramer portfolio outperformed …