Wednesday, September 13, 2006

Using Logic To Examine Risk

A fundamental trap arises when people are unaware of the risks they really are taking and/or of their own true risk profile. In fact, this point crops up again and again in investment literature, but knowledge alone does not help much unless the investor really and truly understands the amount of money he or she stand to lose, the probability that this will occur and the personal or psychological effects this loss may incur.

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