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:
nSpire Network Signup
[…]Wonderful story, reckoned we could combine a number of unrelated data, nonetheless seriously really worth taking a look, whoa did one master about Mid East has got much more problerms also […]
virtual piano
[…]always a large fan of linking to bloggers that I enjoy but dont get a good deal of link enjoy from[…]
home design story
[…]we prefer to honor many other net web-sites around the net, even if they arent linked to us, by linking to them. Under are some webpages worth checking out[…]
x-men home decor
[…]one of our visitors just lately proposed the following website[…]
decorating ideas under $100
[…]we came across a cool web-site which you may well get pleasure from. Take a search for those who want[…]
http://www.hamptonbaylightinghd.com
[…]Sites of interest we’ve a link to[…]
http://www.motupatlugameshd.com
[…]Here are a number of the internet sites we advocate for our visitors[…]
std
[…]Every the moment inside a though we choose blogs that we study. Listed beneath would be the most up-to-date sites that we pick out […]
dating and relationships
[…]Here are a few of the websites we suggest for our visitors[…]
Bondage
[…]usually posts some very interesting stuff like this. If youre new to this site[…]
Glass Sex Toys
[…]the time to read or pay a visit to the subject material or web sites we’ve linked to beneath the[…]
wedding jewellry uk
[…]The information mentioned in the write-up are several of the ideal available […]
group exercise instructor
[…]check beneath, are some completely unrelated web sites to ours, having said that, they may be most trustworthy sources that we use[…]
pure kona
[…]The data mentioned in the article are some of the most effective accessible […]
Wisdom teeth
[…]The facts mentioned within the report are several of the very best out there […]