Modern Portfolio Theory

Investment Management for Mortals

– July 17, 2011

Modern Portfolio TheoryPart 10 | July 18, 2011Overconfidence and self-deception are part of human nature. But knowing this opens the way to better decisions and wiser allocations.Donald R. Chambers, PhD, Research Associate

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Modern Portfolio Theory

Alternative Investments – MPT

– June 20, 2011

Modern Portfolio Theory Part 9 | June 20, 2011Non-traditional investments can strengthen individual portfolios. But they must satisfy three key criteria.by Donald R. Chambers, PhD, Research Associate

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Modern Portfolio Theory

Dynamic Asset Allocation Strategies

– May 13, 2011

Modern Portfolio TheoryPart 8 | May 16, 2011There are only two reasons to reconsider target allocations. Neither are determined by outside circumstances.by Donald R. Chambers, PhD, Research Associate

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Modern Portfolio Theory

Market Timing and Stock Pricing

– April 14, 2011

Modern Portfolio TheoryPart 7 | April, 18, 2011Trading strategies are like casino gambling. You pay your money and you take your chances. But there are more reliable ways to build your portfolio.by Donald R. Chambers, PhD, Research Associate

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Modern Portfolio Theory

Managing the Riskless Portfolio

– March 21, 2011

Managing the Riskless PortfolioAn investor can limit risk by reducing the portion of her wealth exposed to the risky market portfolio and increasing her holdings in the riskless portfolio.by Donald R. Chambers, PhD, Research Associate

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Modern Portfolio Theory

Modern Portfolio Theory: Introduction and Overview

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– March 21, 2011

Introduction and OverviewModern Portfolio Theory suggests that you can maximize your investment returns, given the amount of risk (or volatility) you are willing to take on. This is the idea to be developed and evaluated during this 10-part series. Par …

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Modern Portfolio Theory

Diversification and the Market Portfolio

– February 28, 2011

Diversification and the Market PortfolioThis is the second in a ten-part series exploring the implications of modern portfolio theory (MPT) for common investment decisions faced by individuals. This part focuses on two major concepts: diversification a …

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Modern Portfolio Theory

Managing a Portfolio’s Risk

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– February 28, 2011

Managing a Portfolio’s RiskUsing a four-step plan, you can select a portfolio allocation that generates the desired risk exposure. The more volatility (risk) you can take on, the higher your expected long-term returns.by Donald R. Chambers

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Modern Portfolio Theory

The Asset Allocation Decision

– February 28, 2011

The Asset Allocation DecisionInvestment choices should be based on realistic forecasts of the risk-return trade-off and the investor’s personal preferences about how much risk to undertake.by Donald R. Chambers

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Modern Portfolio Theory

Insurance and Risk in MPT

– February 28, 2011

Insurance and Risk in MPTWhile there are limits on how fully investors can diversify the market portfolio, in practice insurance pools risk so that everyone can enjoy substantial diversification.by Donald R. Chambers, PhD, Research Associate

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