Risk ain't what it used to be

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Investors have fallen for an elaborate con that risk and volatility are one and the same, said Roger Nightingale, global economist at Millennium Global Partners.

Equating the disparate notions he said was "marketing guff." People who have fallen for it understand neither notion, he added, blaming Markowitz and Sharpe for instigating the lie in order to make their models work.

Actuaries saw through the lie but went along with it, he said, seeing they could profit from it by presenting themselve

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