http://offshoreinn.com/investing/why-your-etf-may-have-hidden-risks/ Offshore Inn for International Real Estate, Overseas Jobs, Asset Protection, Expatriate Resources and Overseas Retirement Wed, 08 Feb 2012 23:15:57 +0000 http://wordpress.org/?v=2.6.3 http://offshoreinn.com/investing/why-your-etf-may-have-hidden-risks/#comment-6296 hogueed Thu, 07 May 2009 20:16:46 +0000 http://www.contrarianprofits.com/?p=15993#comment-6296 Dear Matt: I'm afraid you have been trapped by a mathematical quirk of percentage calculations. We are all familiar with the old rule that it takes a 100% gain to make up for a 50$ loss. All percentage calculations are skewed by this mathematical anomaly. If you use points to compare the 1/1 ETF to the 2/1 ETF this anomaly disappears. If the 1/1 ETF goes up and down by $10 the 2/1 ETF goes up and down by $20---nuff said. It would be a shame if you didn't correct this; some good leveraged investments might be missed by those not so mathematically inclined. Dear Matt:
I’m afraid you have been trapped by a mathematical quirk of percentage calculations. We are all familiar with the old rule that it takes a 100% gain to make up for a 50$ loss. All percentage calculations are skewed by this mathematical anomaly. If you use points to compare the 1/1 ETF to the 2/1 ETF this anomaly disappears. If the 1/1 ETF goes up and down by $10 the 2/1 ETF goes up and down by $20—nuff said. It would be a shame if you didn’t correct this; some good leveraged investments might be missed by those not so mathematically inclined.

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