A Mathematician and His Money . . .

2/29/00


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Table of Contents

A Mathematician and His Money . . .

Give a Mathematician a Portfolio and a Computer, and Certain Questions are Bound to be Investigated:

PPT Slide

Does the annual yield reported to me accurately reflect my actual earnings?

Hypothetical Mutual Fund

What the Dow Jones Index Fund Reports to you:

Probably Not

The Good, the Bad,

And the Ugly

How do the final balances compare?

The Math Behind the Numbers

And it Gets Worse

How do the performances of various investment strategies compare?

PPT Slide

Comparison of Effective Annual Yields

Is there a “natural frequency” for dollar-cost averaging? Is there a best day of the month or week for fixed investing?

In the Short Term (1998):

And in the Long Term (1969-1998):

Where To From Here?

Author: Dr. Paul Sisson