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Why You Need Weighted Average for Calculating Total Portfolio Return

Topics: Portfolio Management > Statistics      

This is a very basic article explaining why unweighted arithmetic average is not suitable when portfolio is not equally weighted. See other and more advanced articles about central tendency. 3 stock portfolio example Let’s say you have 1 million dollars and you want to invest it in stocks. You construct a fairly concentrated portfolio – … Read more


Are You a Bear or a Bull? Or a BeaBu?

The almost zero difference between long and short Dollars or euros are the same, regardless if you make or lose them with the market going up or down. But in minds of most people – even when we consciously try to avoid it – trading on long and short side still feels different. Permanent bulls … Read more