What-if Scenarios

Determining the probability distribution of an investment is equal to determining the risk inherent in that investment. By comparing the expected return to the expected risk and overlaying that with an investor's risk tolerance, you may be able to make better decisions about whether to invest in a prospective business venture. DMG will conduct various scenario analysis and provide rationale for their use. 

Historical performance data is required to provide some insight into the variability of an investment's performance and to help investors understand the risk that has been borne by shareholders in the past. By examining periodic return data, an investor can gain insight into an investment's past risk. For example, because variability equates to risk, an investment that provided the same return every year is deemed to be less risky than an investment that provided annual returns that fluctuated between negative and positive. Although both investments may provide the same overall return for a given investment horizon, the periodic returns demonstrate the risk differentials in these investments.