Inflection Point Significance for the Investment Size
Auteur : Ralph Vince
Date de publication : 2013
Éditeur : SSRN
Nombre de pages : 17
Résumé du livre
Inflection points in the the function for determining estimated geometric gain with respect to capital committed emerge when planning an investment for a finite time horizon. These are points where marginal increases in reward with respect to risk peaks. We analyze the properties of inflection points for a mix of one risky asset and one risk-free asset and illustrate their practical implications with examples.