Kurt Angle said:
Well I'd like you to, some of us here are financially literate. I for one wouldn't be surprised if you didn't knwo the answer. What you've expressed on 4C doesn't inspire a lot of confidence in your finance knowledge.
Here... post #43
Risk is NOT that prices will go down, risk is a variance from expected return.
The reason why this is important is because you said this ....
It is risky because there is no diversification, you have not eliminated unsystematic risk.
kurt, a lot of what i say is taken out of context. fortunately my degree and current job provides me with enough satisfaction not too care to much about what people on here say
where did i say automatically? sorry kurt, i didn't. risk definitely comprises of systematic and unsystematic, but to the every day consumer, all they are worried about is price movements. If you want to get into technicalities, great, happy to do so but i didn't think that was the objective with this thread
diversification can reduce risk but it never eliminates it. You can't account for some types of risk, such as a financial meltdown. surely they taught you that one?