CONTRIBUTOR

corey_hoffstein
Corey Hoffstein
Co - Founder, Chief Investment Officer and Portfolio Manager, Newfound Research
Co - Founder, Chief Investment Officer and Portfolio Manager, Newfound Research
Through some simplifying assumptions, modern portfolio theory equates risk with volatility. In many cases, it is a “good enough” approximation: higher volatility indicates a greater probability of larger realized losses. But it also indicates a greater probability of larger realized gains. Most investors, however, are risk averse, meaning they are willing to give up some…