Seeking Gamma

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:

Alpha, Beta, and Now … Gamma (Morningstar)

Full Disclosure: Nothing on this site should ever be considered to be advice, research or an invitation to buy or sell any securities, please see my Terms & Conditions page for a full disclaimer.

What's been said:

Discussions found on the web
  1. full version pc games download commented on Nov 24

    full version pc games download

    […]the time to study or check out the content material or web pages we have linked to below the[…]

  2. free games download for windows 8 commented on Nov 24

    free games download for windows 8

    […]Here is a good Weblog You might Come across Intriguing that we Encourage You[…]

  3. pc games free download for windows 8 commented on Nov 25

    pc games free download for windows 8

    […]although web sites we backlink to beneath are considerably not related to ours, we really feel they may be really really worth a go through, so possess a look[…]

  4. قیمت دوربین fisheye commented on Nov 25

    دوربین مدار بسته چشم ماهی

    I’m actually loving the topic/style of your web site. Do you at any time run into any web browser compatibility issues? A little quantity of my website viewers have complained about my website not functioning accurately in Explorer but seems great in C…

  5. windows games for pc download commented on Nov 25

    windows games for pc download

    […]below you will come across the link to some web sites that we assume you need to visit[…]

  6. pc games for windows 7 commented on Nov 25

    pc games for windows 7

    […]Here is a good Blog You may Uncover Exciting that we Encourage You[…]

  7. laptop app free download commented on Nov 25

    laptop app free download

    […]one of our guests lately recommended the following website[…]

  8. قیمت دوربین به شکل لامپ commented on Nov 26

    خرید دوربین لامپی

    Thank you for some other excellent article. In which else might just any person get that variety of info in such an best implies of creating? I’ve a presentation up coming week, and I am on the search for such details.

  9. free download for pc commented on Nov 26

    free download for pc

    […]please pay a visit to the websites we follow, like this one, because it represents our picks in the web[…]

  10. Pinganillo para examenes commented on Nov 26

    Pinganillo para examenes

    […]we prefer to honor a lot of other web sites on the internet, even if they aren’t linked to us, by linking to them. Underneath are some webpages worth checking out[…]

  11. iphone x case commented on Nov 27

    iphone x case

    […]Here are several of the internet sites we suggest for our visitors[…]

  12. best anal starter kit commented on Nov 27

    best anal starter kit

    […]we like to honor several other internet websites around the internet, even though they aren’t linked to us, by linking to them. Underneath are some webpages really worth checking out[…]

  13. pure enrichment personal massager commented on Nov 28

    pure enrichment personal massager

    […]that would be the finish of this report. Right here you will come across some web-sites that we think you’ll value, just click the links over[…]

  14. wsmoney commented on Nov 28


    […]one of our visitors a short while ago encouraged the following website[…]

  15. sex movie commented on Nov 29

    sex movie

    […]we came across a cool internet site that you simply may love. Take a appear in the event you want[…]