What Swordfishing Can Teach You about Risk and Return

Do a little reading up on the relationship between investment risk and return and you’re likely to come across complex math models and detailed discussions about betas, coefficient of variation, negative correlation, standard deviation, capital asset pricing models, and on an on. Sound like a fun time to you? Me, neither. I learned all those models and terms in graduate business school (I had to, they made me), and while they’re definitely worth knowing, the basic concepts of risk and return are pretty simple.

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