Jim Simons and His Quants
We meet colorful characters, financial success, and business matches made in heaven — but also ceaseless struggling, heartbreaking losses, friendships, marriages, and partnerships with flourishing beginnings and abrupt endings.
READ MOREInvestment Management for Mortals
Modern Portfolio Theory Part 10 | July 18, 2011 Overconfidence 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
READ MOREAlternative Investments – MPT
Modern Portfolio Theory Part 9 | June 20, 2011 Non-traditional investments can strengthen individual portfolios. But they must satisfy three key criteria. by Donald R. Chambers, PhD, Research Associate
READ MOREDynamic Asset Allocation Strategies
Modern Portfolio Theory Part 8 | May 16, 2011 There are only two reasons to reconsider target allocations. Neither are determined by outside circumstances. by Donald R. Chambers, PhD, Research Associate
READ MOREMarket Timing and Stock Pricing
Modern Portfolio Theory Part 7 | April, 18, 2011 Trading 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
READ MOREManaging the Riskless Portfolio
Managing the Riskless Portfolio An 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
READ MOREModern Portfolio Theory: Introduction and Overview
Introduction and Overview Modern 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. Pa …
READ MOREDiversification and the Market Portfolio
Diversification and the Market Portfolio This 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 …
READ MOREManaging a Portfolio’s Risk
Managing a Portfolio’s Risk Using 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
READ MOREThe Asset Allocation Decision
The Asset Allocation Decision Investment 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
READ MOREInsurance and Risk in MPT
Insurance and Risk in MPT While 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
READ MORE
