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:
forex live signal
[…]very couple of web-sites that transpire to be comprehensive beneath, from our point of view are undoubtedly nicely worth checking out[…]
Search 3000 App
[…]Sites of interest we have a link to[…]
amazon Customer Reviews
[…]although sites we backlink to below are considerably not associated to ours, we really feel they’re really worth a go through, so have a look[…]
best budget laptop
[…]Sites of interest we have a link to[…]
buy youtube views cheap
[…]the time to read or pay a visit to the material or websites we’ve linked to below the[…]
camere spion
[…]Here is a great Blog You may Locate Exciting that we Encourage You[…]
iran backgammon
[…]although internet websites we backlink to below are considerably not related to ours, we feel they are actually really worth a go by way of, so possess a look[…]
P8010-003 Certification Exam Questions and Answers
[…]just beneath, are several absolutely not associated websites to ours, nevertheless, they are surely worth going over[…]
international prostar premium south carolina
Clasificados Online para El Transportista Si Somos los números 1 ¿Compra o Vende? Camiones, Camionetas, Volteos, Trailers – Trabajos para el Transportista
cheapest smm panel
[…]we came across a cool site that you just could take pleasure in. Take a appear in case you want[…]
pc apps for windows 10
[…]although web-sites we backlink to beneath are considerably not associated to ours, we really feel they are truly really worth a go via, so have a look[…]
rotating vibrator
[…]although internet sites we backlink to beneath are considerably not connected to ours, we really feel they’re in fact worth a go by means of, so have a look[…]
adam and eve
[…]one of our visitors just lately proposed the following website[…]
the rabit sex toy
[…]please go to the sites we follow, including this one particular, as it represents our picks from the web[…]
wet wabbit
[…]usually posts some incredibly fascinating stuff like this. If youre new to this site[…]