Investment Strategies and Risk Analysis

So, return versus standard deviation.

To put your choice of investment on this chart.

So, what is cash? That's here. So, let's call this cash.

So, let's just call it 5 year note or 10 year bond.

Should return better than cash

with some volatility? Let's call it here.

What is investing in startup venture capital fund?

Very high return, but you can lose all your money. So, probably somewhere here.

Buying stocks, let's call it somewhere here.

Trading gold, oil.

So, let's call this commodity.

ETFs is typically lower than single stock volatility.

Real estate, I

would say probably somewhere around here.

Private equity, somewhere here.

That's where we learn about efficient frontier.