trendfollowing's Commentaries
Mar
17
2010
Think About It
by trendfollowing
Overall Rating:
A trend following fund friend sent this along this morning…
Investment A example:
Average annual return: 9%
Standard deviation of return: 6%
Worst case drawdown of approximately: 12%
Investment B example:
Average annual return: 30%
Standard deviation of return: 20%
Worst case drawdown of approximately: 40%
His comment: “Most people prefer the safety of a 9% return with a 6% fluctuation. However, both investment risk/return [...]
Tags: trend-following
