When comparing returns by decade, the Ibbotson study shows that
small company stocks outperformed large company stocks in every decade since
Those who attempt to engage in short-term market tactics are
Research has shown that it is not that difficult to beat the
market on a risk-adjusted basis.
Liquidity can be measured by the ability of the investor to
convert an investment into cash within a relatively long period of time, at
its fair book value.
Real assets, because of increasing replacement value and
scarcity, tend to perform better than financial assets during periods of high
One of the problems that investors face in determining required
rates of return is forecasting errors involving interest rates and
Every investment requires a total return comprised of a real
rate of return, compensation for inflationary expectations, and a risk
Beta measures a security's return relative to the market.