Davidmanheim comments on Twenty basic rules for intelligent money management - Less Wrong

32 Post author: James_Miller 19 March 2015 05:57PM

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Comment author: Davidmanheim 22 March 2015 09:49:13PM 0 points [-]

Exactly.

If you look at the single period mean, it will not represent the portfolio return. That's why the expectation of an RV in a single period is insufficient information for looking at the return, and why we want to reduce volatility, and preserve expected.