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Edit looks like the fair labor standards act of 1938 set a min wage of 0.25 per hour so without any taxes or expenses one would have to work 2400 hours to get that initial 600.00
Triple sigh, investment performance is not Gaussian distributed.
...and in other news, in a poll of 10,000 motor vehicle drivers, 100% rated themselves in the top 50%.
OK, the following picture shows the actual distribution of monthly returns of the S&P 500 vs. the Normal Distribution, and shows the skew and kurtosis. Feel better?
Last edited by SportyandMisty; 02-15-2015 at 09:48 AM..
...and in other news, in a poll of 10,000 motor vehicle drivers, 100% rated themselves in the top 50%.
OK, the following picture shows the actual distribution of monthly returns of the S&P 500 vs. the Normal Distribution, and shows the skew and kurtosis. Feel better?
Why are we using a holding period of just one month, when the discussion was brought about in a context of people accumulating wealth over 10-20 years? Even a lognormal distribution is a better approximation to reality but still doesn't really cover tail risk.
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