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50% high risk + 50% low risk....100% medium risk investments, whats the dif. ?


I was reading about investing and this poped into my mind...

1st one- you have a stable portion of investment and of portion with high Volatility. so in the end your risk is 50% right?
2nd one- 100% in medium risk. so 50% risk ?

Nope. Because high risk is all or nothing. Low risk means you make nothing.

Medium risk is basically their way of saying "a decent return".

So if you invest $1000, with the 50/50 method (assuming 1/2 the high risks flop) you would have about 500+500 so $1000 at the end of the day. With a medium risk, you would probably have more like $1250.

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