17 Pages Posted: 11 Mar 2013
Date Written: February 27, 2013
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.
Keywords: risk analysis, growth portfolio, inflection point
JEL Classification: C52, G11
Suggested Citation: Suggested Citation
Vince, Ralph and Zhu, Qiji Jim, Inflection Point Significance for the Investment Size (February 27, 2013). Available at SSRN: https://ssrn.com/abstract=2230874 or http://dx.doi.org/10.2139/ssrn.2230874
By Andrew Ang