What's the Proper Beta? Financial Advisors and the 'Two-Beta Trap'
- Stock prices, stock indexes and index funds. Brealey, Richard A. // Bank of England Quarterly Bulletin;Feb2000, Vol. 40 Issue 1, p61
Examines the price adjustments when a stock is added to, or removed from, a stock market index. Stock prices, stock indexes and index funds; Effect on stock returns of changing portfolio weights; Effect of performance benchmarks; Effect of membership of stock market indexes.
- Octopus' Soonaye: Monkey business versus the science of portfolio construction. Soonaye, Mark // Fundweb;4/5/2013, p7
The article discusses a study on how indices and funds are constructed. The study gathered 43 years of performance data on 1,000 U.S. stocks then compared the returns of a market-cap weighted index to indices made up of the same stock but constructed in different ways. Results of the study...
- The Tortoise Portfolio. Larson, Paul // Morningstar StockInvestor;12/15/2008, Vol. 8 Issue 6, p2
The article reports on the performance of Tortoise portfolio which was adopted by several companies as of 2008. It recounts that on June 18, 2001 until December 4, 2008, the portfolio has returned 44.3% compared with a negative 20.3% total return for the Standard & Poor's (S&P's) 500 Index....
- indexing. // International Dictionary of Finance, 4th Edition;2003, p132
Information on the term "indexing" is presented. It refers to weighting a portfolio in the same proportions as the components of a share index such as Standard and Poor's 500. The performance of a fund consisting of company shares weighted in this way will mirror that of the index, thus ensuring...
- Material World. Israelsen, Craig L. // Financial Planning;Jul2012, Vol. 42 Issue 7, p60
The article discusses the natural resources mutual fund and its benefits. It says that the funds have several attractions including its disconnection with broad stock indexes which is considered as a valuable feature of the sector. It mentions that the funds can be an alternative option for the...
- Can you handle the risk? Resnick, Rosalind // Entrepreneur;Jan2009, Vol. 37 Issue 1, p34
The article elaborates on the importance of risk management during the economic downturn in the U.S. During this situation, most investors panicked when market collapses because most often, they end up losing their initial investment as well as the opportunity for upside. Before one decided to...
- Researcher's commentary: Funds at least one year old. Keown, Deidre // Money Management;6/3/2004, Vol. 18 Issue 19, p24
Investigates the performance of Australian equity funds younger than one year old. Division of the range of returns into deciles; Determination of the decile rankings of the funds; Presentation of the relative outperformance or underperformance of funds.
- Enhanced Performance Measurement of Mutual Funds: Running the Benchmark Index through the Hurdles. Costa, Bruce A.; Jakob, Keith // Journal of Applied Finance;2010, Vol. 20 Issue 1, p95
The Carhart four-factor model is the most widely used risk-adjusted performance metric for mutual fund returns. Recent papers find the four-factor model generates significant alphas and factor loadings for unmanaged stock market indexes. In this paper, we introduce a new methodology to eliminate...
- The Fund Funnel. Israelsen, Craig L. // Financial Planning;Nov2003, Vol. 33 Issue 11, p117
Deals with the use of funnel filters in choosing mutual funds for financial planning clients. Process involved in the filter that isolates funds with long performance history; Technique for filtering redundant portfolios; Results of filtering expense ratio.