Diversify your investments! Hold a portfolio. Duh....these words always drummed into everyone.
Why? Cos company specific risk will be reduced and spread out leaving behind that element of the market risk, meaning things such as war, inflation, recession or any unforseen shit starts striking up, everyone's screwed and there's no avoiding of that risk involved in your stock.
Oh and the standard deviation actually measures risk. Statistic has never been this fun b4.
Friday, February 6, 2009
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