What an iron condor profits from — the stock staying within a range

What the Treynor-Black model does — combines active stock picking with a passive market portfolio

The Treynor-Black model optimizes portfolio returns by blending active investments with a passive market index

What anchoring does in investing — the purchase price biases your sell decision

Anchoring bias causes investors to base sell decisions on initial purchase price rather than current market value

What Buffett's annual letters consistently emphasize — focus on return on equity, not earnings per share

Buffett's letters stress long-term value creation via high return on equity

What a stock split does — increases share count while proportionally reducing price

Stock splits increase the number of shares, proportionally decreasing the price per share

What Graham's net-net strategy is — buy stocks trading below net current asset value

Graham's net-net strategy: Buying stocks with price below net current assets

What volatility smile shows — implied volatility varies with strike price, contradicting Black-Scholes

Volatility smile indicates implied volatility's non-linearity with respect to strike prices