Part 3. Portfolio Management

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Part 3. Portfolio Management

In part 1 (Risk and Returns) I mentioned  “The expected rate of return on a stock represents the mean (average) of a probability distribution of possible future returns on a stock.  It is quite easy to calculate.   By downloading the historical prices of a stock and place into a Microsoft Excel file, we can let excel calculate the returns, which is computed by taking the last price minus previous price and we divide on previous ...

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Part 2 Diversification – how to manage your portfolio

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Part 2. Diversification  (see part 1 – Risk and Returns from day before)

In part 1 (Risk and Returns) I mentioned  “The expected rate of return on a stock represents the mean (average) of a probability distribution of possible future returns on a stock.  It is quite easy to calculate.   By downloading the historical prices of a stock and place into a Microsoft Excel file, we can let excel calculate the returns, which is computed by taking the ...

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Part 1 Risk and Return – how to manage your portfolio

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Part 1. Risk and Returns

At FS Securities we do not treat all our clients the same.  We try to understand their risk appetite before they commence trading.   We believe that most clients will fall into one or a combination of the following trading styles:

  • Investors (long term view with low risk)
  • Traders (shorter term views with various risk appetite)
    • Conservative trader (moderate risk appetite)
    • Aggressive Trader, and (between the risk appetite of the conservative and very aggressive)
    • Very aggressive trader. (happy to take major ...
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