Volatility and Returns

Volatility and Returns

Should you worry about the volatility of asset returns as a long-term investor? Yes, you should, because it will cost you money over time. People tend to only look at arithmetic returns of an investment, meaning the return in a specific period. Instead, investors...
Risk Premia Harvesting

Risk Premia Harvesting

If Investors want to earn expected returns higher than the riskless rate, the most reliable way is to bear risks that markets reward with a premium. A less reliable way is to pursue active management, in which successful investors (skillful or lucky) reap gains at the...