RISK AWARE INVESTMENT GUIDE FOR EVERYONE

  Now let’s turn our attention to a less exciting topic: the cost of investing. In investing, a penny saved is a penny earned.   Only net returns matter! Recall that the ultimate goal of any investment is to implement the formula max(Net Return) = max (Gross Return) - min (Total Cost), where Total C ost refers to all of the costs incurred to make an investment, which includes the cost of the investment, plus any broker commissions, taxes, licenses, and fees related to the asset management and transaction s . The good news is that c utting costs while i ntroducing a cost-control system is a sure-fire way to improve the profitability of your portfolio without taking on any additional risk .   You may want to examine each of these categories of expenses and minimize them wherever possible : 1. The expense ratio The expense ratio is calculated by dividing total fund costs by total fund assets [1] . It includes annual operating costs, including managemen...

  This session is all about financial data management in the context of BI prescriptive analytics [75]. This is where the market research starts. By evaluating aforementioned financial metrics and ratios (FMR) of past and current stock data, your objective is to  measure and compare operational performance against their counter-parties, industry benchmarks, and peers.  The financial statement of a company can also be compared to that of one or more other companies within the same industry. This breaks down into the following steps to follow : 1.  Let’s evaluate companies based upon the business/financial risk analysis and comparison of SEC registered and publicly disclosed “buy, hold, and sell” credit ratings for financial markets provided by big three and smaller credit agencies (S&P, Moody’s, Fitch, Duff &Phelps, DBRS, Kroll Bond, etc.); rating agencies help investors  decide where to invest their money and whether the risk involved in buying a debt se...