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Inflection Point Significance for the Investment Size

17 Pages Posted: 11 Mar 2013  

Ralph Vince

Vince Strategies LLC

Qiji Jim Zhu

Western Michigan University

Date Written: February 27, 2013

Abstract

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

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

Ralph Vince

Vince Strategies LLC ( email )

405 Lexington Ave - 26th fl
New York, NY 10174
United States

HOME PAGE: http://vinceprime.com

Qiji Zhu (Contact Author)

Western Michigan University ( email )

Kalamazoo, MI 49008
United States

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