Low Volatility Anomaly in the Stock Market

Historical prices of Bitcoin. Source: https://www.coindesk.com/price/bitcoin
Historical prices of GameStop (ticker: GME). SOURCE: https://finance.yahoo.com/
Historical compound returns for risky (red) and safe (blue) portfolios. Source: https://www.ivo-welch.info/research/histbetapfios.svg

“High Returns Must Come with High Risks”

Risky stocks (brown) go up and down more than the stock market (blue), while safe stocks (yellow) move more smoothly. Source: https://learn.robinhood.com/articles/EBYb8K3dHtIwluGqOhZDQ/what-is-beta/
  1. “Safe Game”: If we toss head, we win $4. If we toss tail, we lose $2.
  2. “Risky Game”: If we toss head, we win $10. If we toss tail, we lose $8.

Big Investors, Small Investors

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A place dedicated to writers of Shun Hing College (HKU) — Hong Kong. https://www.shunhingcollege.hku.hk/

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Shun Hing College — HKU

Shun Hing College — HKU

A place dedicated to writers of Shun Hing College (HKU) — Hong Kong. https://www.shunhingcollege.hku.hk/

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