Yeah, this is “continuous” in this context.
No, this statement indicates that you are always “playing with the whole bankroll”. Has nothing to do with the length of the time step.
The modern portfolio theory assumes log-normal distribution of returns. This is what I was trying to acquire.
Nice idea, because nominal stock returns can be misleading, especially in your decumulation/retirement phase. Stock market gaining 2% doesn’t mean you got 2% more spending power if inflation’s risen by 2%.
Someone should inform cash/bond investors too who get excited about their nominal interest rates