Why can two different holdings still behave like one concentrated position?
A two-holding scenario worksheet shows why labels and holding counts do not determine how losses combine.
Updated
Explore a topic
Portfolio & risk
Understand weights, diversification, losses, rebalancing and ongoing costs without treating an example as a personal allocation.
How does a holding’s weight change its contribution to a portfolio loss?
A fixed-weight hypothetical worksheet separates an asset’s percentage decline from the loss it contributes to the total portfolio.
Updated
Can new contributions bring a portfolio back to its target mix?
An original three-case worksheet compares a trade, a partial cash contribution, and a contribution allocation that reaches the same fictional target.
Updated
Why can an ongoing annual fee cost more than the fees actually deducted?
A two-year hypothetical calculation separates fees paid from the additional balance difference caused by a smaller amount remaining invested.
Updated
Why can an average return be zero while the ending balance is lower?
A two-period worksheet distinguishes the average of percentage returns from the constant rate that reproduces compound growth.
Updated
Why does recovering from a 25% loss require more than a 25% gain?
A peak-and-trough ledger calculates drawdown, remaining distance to recovery, and the larger percentage needed from a reduced balance.
Updated
Why can time-weighted and money-weighted returns disagree?
An auditable two-year example links subperiod returns and solves a separate annual IRR using dated investor cash flows.
Updated
How can the same index constituents produce different concentration and returns?
Construct capitalization-weighted and equal-weight toy indexes from the same three companies, then inspect their different influences.
Updated