Ed Butowsky discusses the importance of evaluating financial advisors and investment portfolios through a specific question he has developed, referred to as the “Catch 22 Question.”
This question is designed to assess the risk associated with an investment portfolio in relation to its expected rate of return. Ed emphasizes that if a financial advisor cannot answer this question, they should not be managing your investments.
The Catch 22 question is: If you had a portfolio with a rate of return of 10%, what should your risk, or standard deviation, be? The correct answer should be…
Watch the video below for the answer.
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