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Hang the theory

Mr Bearbull

Mr Bearbull

If modern portfolio theory tells us one thing, it is that you cannot have reward without taking risk. This is axiomatic. Thus portfolio management is all about controlling risk - minimising risk for each unit of portfolio return. But could it be that the principle is more dogmatic than axiomatic; that, really, you can have reward without taking risk - not just occasionally, which is obviously so, but consistently, year in, year out?

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