Can a person assume that, if given enough time, risky investments will be worth more than safe ones?
Friday, March 6th, 2009
Matt C asked:
Is it a fact, or at least reasonable to assume, that if given a few decades risky investments(say perhaps around 35% chance to lose all value) will be more profitable than very secure investments? Does compounding on productive years erase the losses from previous years, or will small rate of return compounded have a higher probabilty of being more profitable?
LEE
Is it a fact, or at least reasonable to assume, that if given a few decades risky investments(say perhaps around 35% chance to lose all value) will be more profitable than very secure investments? Does compounding on productive years erase the losses from previous years, or will small rate of return compounded have a higher probabilty of being more profitable?
LEE
