From: "dapperdobbs" 
Newsgroups: misc.invest.financial-plan
Subject: Re: Mortgage on owned property
Date: Fri, 8 Sep 2006 15:25:11 -0500
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Elle wrote:
> Unless the time horizon is specified, the terms "risk" and
> "volatility" do not have meaning and will clash endlessly in
> this discussion.

Jean L.P. Brunel, CFA ("Integrated Wealth Management", published by
Euromoney International Investor, Plc, 2002, ISBN 1 85564 923 3). (Pp.
120-121.)  "Jones and Wilson have put it best: The key to understanding
the time diversification controversy is to separate annual average
total returns from cumulative wealth. Then, the following statement can
be made: Risk, as measured by the probability distribution of returns
around a per-annum average total return over multiple time periods,
decreases over time. Risk, as measured by the probability distribution
of returns around the cumulative mean of total returns over multiple
time periods, increases."  In the bibliography, "Jones, C.P. and J. W.
Wilson. 'Probabilities Associated with Common Stock Returns.'
[Italics:] The Journal of Portfolio Management, Fall, 1995."