Houjichasan

Rain01 wrote:
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Moreover given your arguement about investor looks at ER AND RISK. In this specific question he has NOT expressed his preference in terms of EXPECTED RETURN AND RISK. The only 2 things he has said i have already stated in previous post. So we cant enforce something which he did not say. How can you convert:
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[1] the investor is a BPT investor, so looking at returtns/risk is not surprising
[2] the layers are defined in terms of risk/return/probabilities, so you need to convert money terms into returns
[3] there is nothing magical about converting nominal prices into returns