Portfolio Management
We measure the “ rate of return ” from an asset, with the annualized rental income per the market price . At the time of investment, the price is certain while the future incomes are not: they are “expected” at best; some are more certain the others, but nothing is completely free of uncertainties. Bluntly saying, investment is speculative ; to be honest, it’s sheer gambling . On the flipside, a conventional wisdom tells us “not to put all the eggs in one basket.” In a similar vein, we are to and do make the so-called “all-in bet,” if at all, once in a lifetime. Most of us wouldn’t dare to cross another River of Rubicon for fear of becoming a traveler on the River. Watch your steps! Sports betting. Suppose any of us is soon to bet a big money at a ball game neck-and-neck between the home team and the away team. Which team should and would she pick as the (expected) winner? Of course it d...