The Graham and Dodd Method, also known as value investing, is an investment approach outlined by Benjamin Graham and David Dodd in their landmark book 'Security Analysis,' initially published in the 1930s. This method advocates for buying undervalued stocks based on thorough fundamental analysis, with the expectation that these stocks will eventually appreciate to their true intrinsic value in the marketplace.
The mean return is a key metric in security analysis, representing the expected value or average of all possible returns on investments within a portfolio. It is also used in capital budgeting to determine the mean value of the probability distribution of possible returns.
