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About this chapter
Investment Fundamentals. What risk, return, and fees do to an investment over time, and how a mix of assets changes both.
Labs for this chapter
- Risk toleranceScore risk tolerance against drawdown reactions, then map it to a mix.
- Asset allocationSet a stock, bond and cash mix against horizon and risk tolerance.
- Compound interestModel long-term growth across contribution scenarios.
- Dollar-cost averagingCompare a lump sum against spreading the same money over time.