Research
Going the Distance: How to Conquer the Challenges Imposed by Liquidity Requirements
In Part 1 of our blog series, Understanding Risk, I introduced readers to the concept of volatility as a measure of risk and uncertainty, in addition to discussing the potential impact that volatility could have on wealth and that wealth is dependent on the path that returns take. In Part 2, I further illustrated this concept by running scenario […]
Research
Volatility, A Skewed Reality
In the previous installment of our volatility series, I explained what volatility is and how it relates to investing. I also introduced the concept of the divergence between arithmetic returns and geometric returns, and how volatility exacerbates this phenomenon, which is often referred to as volatility drag. Volatility drag is something that is often debated by investment […]