Correlation is the degree to which two assets move ... for rebalancing your portfolio, the amount of money invested in stocks can be determined with the following formula: For example, suppose ...

Investors often use standard deviation ... of an entire portfolio, but this formula is far more complex. To keep things simple, we will explain the formula assuming a two-stock portfolio.

Buffett’s 2-Fund portfolio advocates for a 90:10 asset allocation between an S&P 500 Index fund and short-term United States Treasury government bonds. In his 2013 letter to Berkshire Hathaway ...