Lost in the shuffle last week was this fascinating discussion at Morningstar about a new way to judge and evaluate the relative success of one’s retirement portfolio – not through the traditional lens of alpha and beta…
From Morningstar:
The benefits from “good” financial-planning decisions are difficult to quantify. For any given portfolio, investment decisions generally can be decomposed into two primary components: beta and alpha. Beta can be defined as the systematic risk exposures of the portfolio (usually achieved through asset allocation), and alpha is the residual (skill or luck-based) component associated with the various flavors of active management, such as tactical asset allocation, security selection, and more. Alpha and beta are at the heart of traditional performance analysis; however, their impact on a successful retirement can be far less important than other financial- planning decisions.
In this article, we introduce a concept called “Gamma,” which is designed to measure the additional expected retirement income achieved by an individual investor making intelligent financial-planning decisions. Gamma is the third letter in the Greek alphabet (preceded by alpha and beta), and within financial economics, it is sometimes used as the variable denoting an investor’s degree of risk aversion. Given that Gamma is relatively unclaimed within financial literature, we seek to give it new meaning.
Keep Reading:
rehab clinic
[…]Here is a great Weblog You may Find Fascinating that we Encourage You[…]
women are aware
[…]just beneath, are quite a few absolutely not associated web-sites to ours, having said that, they’re certainly worth going over[…]
cock ring
[…]check below, are some totally unrelated internet websites to ours, nevertheless, they’re most trustworthy sources that we use[…]
wedding bouquet jacksonville fl
[…]the time to study or go to the content or web-sites we have linked to beneath the[…]
work from home 2017
[…]although websites we backlink to below are considerably not connected to ours, we really feel they may be essentially worth a go through, so have a look[…]
buy kona
[…]here are some links to internet sites that we link to because we believe they are worth visiting[…]
gd&t e-learning
[…]although web sites we backlink to beneath are considerably not connected to ours, we really feel they are really worth a go by means of, so possess a look[…]
everyday deals trademark
[…]check beneath, are some completely unrelated websites to ours, however, they may be most trustworthy sources that we use[…]
dual sex toys
[…]below youll find the link to some internet sites that we believe you’ll want to visit[…]
region v special education
[…]just beneath, are numerous totally not associated web pages to ours, however, they may be surely worth going over[…]
clinica de recuperação
[…]Here is a great Blog You may Discover Exciting that we Encourage You[…]
Pure Magnesium Supplement
[…]please check out the web sites we follow, which includes this 1, because it represents our picks from the web[…]
Pagani
[…]Wonderful story, reckoned we could combine a few unrelated information, nevertheless genuinely worth taking a appear, whoa did one master about Mid East has got far more problerms as well […]
computer education uses
[…]that could be the finish of this write-up. Here youll discover some web sites that we consider youll appreciate, just click the links over[…]
online education offers access and affordability
[…]just beneath, are several completely not connected web sites to ours, nonetheless, they may be surely really worth going over[…]