I understand that the portfolio will frequently have large changes in value. Returns significantly exceed inflation. Returns moderately exceed inflation. Returns slightly exceed inflation. Returns only keep pace with inflation.
Investors can try to increase return or reduce risk.
Increasing return is more important but still try to reduce risk. Reduce risk is more important, but still try to increase return. The graphs below show the annual returns for three hypothetical investments over a 20-year period. Investment A b. Investment B c. Investment C 6. In the past month, the portfolio lost half of its previous gains, as shown in the graph below.