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Article: Betting on Monte Carlo.(for risk management)(Product Information)
- Article from:
- Accounting Technology
- Article date:
- October 1, 2000
- Author:
CopyrightCOPYRIGHT 2000 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Can a sophisticated technique make financial planning simpler?
Asking investors to assess their tolerance for risk involves a lot more art than science, says Greg Curry, CPA, CFA, and president of Louisville, Ky.-based Pillar Financial Advisors.
"I don't think humans are a very good judge of what their risk tolerance is," says Curry. "When the market is going up 30 percent a year, it's very high." So Curry tends to dismiss the ability of any one tool to help clients sort out the nasty things that can happen to your money.
There are a lot of ways of using statistical terms to talk about risk. But Curry believes that the planner's own common sense ...