CHAPTER 1
Risk and Return
The reader for whom this volume is intended is no doubt already thoroughly aware of the intimate relationship between risk and return, so there is no need to rehearse the usual clichés about the availability of free lunch, the obverse and reverse of coins, the relationship between timber growth and the sky, and so forth. The analyses found here rely on the premise that understanding the returns that investment vehicles produce means understanding the risks that they take. My contention that the palette of available return-generating risks is fundamentally the same for all investment vehicles, and that the risks are quite limited in number, informs my expectation that it will be possible to uncover some useful continuity ...

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