It follows a formula like this :Dollars invested in stocks = mX (Present wealth - Floor) where m >1The floor is the level of wealth where the investor cannot tolerate risky investment and is not willing to put any a cent in stocks.

 
  • 计算方程式如下:投资于股票的款额=mx(现有财富-不愿承担风险的财富)m将高过1。
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