2min chapter

The Compound and Friends cover image

The Bet

The Compound and Friends

CHAPTER

The Importance of Risk Adjusted Returns

Rid-HOLT: How much do you care about risk adjusted returns? The answer is a lot, but it doesn't matter if you're looking at your account four times a day or twice a year. If you are trying to optimize for the results of someone to grow their assets to retirement over some time horizon, then you might not need it. But somewhere between 20 and 30 is kind of like the optimal where you can get the best risk adjusted returns.

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