Comprehensive learning assessment 2 | Business & Finance homework help
In addition, further extremes outside 2 standard deviations from the mean are also possible but much less likely – only 5% being expected to yield rates lower than 4.4%, while another 5% exceeding 11.6%. However these figures do not necessarily indicate success or failure as there are numerous variables at play when it comes to investing including individual risk tolerance and long-term goals which could ultimately make some higher risk/higher reward ventures more attractive than more consistent returns depending on one’s situation.
Ultimately though, understanding how different portfolios may perform over time is essential for making informed decisions when it comes to investing – especially when dealing with large sums like $1 million dollars. By keeping track of trends, establishing reasonable expectations based off past performance and diversifying investments appropriately based off personal preferences, investors can help minimize their risks while still potentially achieving competitive returns on their investments no matter the duration or size involved.