😆
Originally posted by: chatbuster
lol. here we go getting excited. let's try this again.😆
say we have a universe of 2 stocks. now what portfolio should you hold? 1 stock? that would be like loading the boat, putting all your eggs in one basket. the neutral/ right thing to do would take into account respective risk/ return profiles on an expectations basis, and the result most often will not be 50% each for both stocks. rather it will/ should be skewed towards the higher return/ lower risk stock, although again you should probably not want all your holdings in one stock.😊
😆 it is getting intresting..
kinda complicated example😉 but hats off to your fighting spirit👏
i understood your example...its from business studies .😆..hmmm i would say in your example u are not being neutral....the term is probability...
there are some laws in business.. and this is one of them ..the law of assumptions and probabilities... where you need to assume looses and beaware of risks as well as expect profits from the same thing....
let me give a simple eg. of this...
when a business launches a product ....it leaves no stone unturned to make the product liked by the consumer....after product launch it anticipates profits ...(now comes business law) as well as it has a risk of losses due to product failure....
anticipating profits and fearing risks of losses are business terminologies...
i fear they would'nt be described as neutrality😃