Description: Muhlenkamp defines "risk" as the probability of losing purchasing power. Statistics are used because they are available, not necessarily because they are informative. Outside of short term or specifically, time diversification allows fundamental trends to override short term volatility. Investment diversity depends on spreading investments over several enterprises, not over security classes.

Description: Risk adjusted returns.

Description: Muhlenkamp defines "risk" as the probability of losing purchasing power. This essay questions whether one year periods are appropriate to measure volatility. It proposes fundamental reason why equity returns exceed bond (or any other) investment class which is unrelated to statistical variances.