Multiply Returns by Dividing

Israelsen, Craig L.
October 2011
Financial Planning;Oct2011, Vol. 41 Issue 10, p119
The article focuses on the equally weighted three-fund approach in investment to gain stock market exposure in the U.S. It notes that allocation resulting from such approach is one-third large-capitalization (cap), one-third mid-cap and one-third small-cap. It adds that a three-fund approach taken from January 2001 to December 2010 has yielded an annualized return of 5.2%. Advantages of a three-fund approach over a single mega-fund approach are mentioned, one is separable performance.


Related Articles

  • Monthly Pattern and Portfolio Effect on Higher Moments of Stock Returns: Empirical Evidence from Hong Kong. Tang, Gordon // Asia-Pacific Financial Markets;1998, Vol. 5 Issue 3, p275 

    Using a direct test, this paper studies the month-of-the-year effect on the higher moments of six industrial stock indices of the Hong Kong market. We also examine the portfolio effect on skewness and kurtosis across month of the year to see if such an anomaly exists. The empirical results...

  • The penny hopefuls. Haselhurst, David // Money (Australia Edition);Feb2003, p62 

    Offers ideas on making money on the stock exchange. Factors to consider about the state of the company; Trademark of speculative stocks; Returns offered by tiny shares in stable company groups; Tips on monitoring cyclical stocks.

  • Uncovering Sector Momentums. Cao, Melanie; Wei, Jason Z. // Canadian Investment Review;Winter2002, Vol. 15 Issue 4, p14 

    Presents a study that investigated the momentum behavior of 14 subgroups of the TSE300 Composite Index. Summary statistics for the monthly returns of the subgroups, covering the period from January 1961 to December 1999; Details on momentum strategies for all 14 subgroups; Analysis of the...

  • What Stock Market Returns to Expect for the Future? Diamond, Peter A. // Social Security Bulletin;2000, Vol. 63 Issue 2, p38 

    Presents information on a study which examined critics' arguments on stock market returns. Review of the historical record on rates of return; Assessment on the critics' reasons why future returns may be different from those in the historical record; Difference between gross and net returns and...

  • You can make 3 times more money by betting on stocks in Pakistan than in India.  // FRPT- Finance Snapshot;7/18/2016, p29 

    The article reveals that investors can earn three times more on the Karachi Stock Exchange's KSE30 index in Pakistan than on Bombay Stock Exchange's Sensex in India, according to ETMarkets.com.

  • Intraday Return - Order Imbalance Relation in NASDAQ Hedging Top Gainers. Su, Yongchern; Chou, Mingchin; Chen, Peiwen // International Research Journal of Finance & Economics;2010, Issue 56, p68 

    Order Imbalances have been proved to have a significant relationship with stock returns. Previous research also shows hedge trades generate particular stock return patterns. In this paper, we investigate the relation between order imbalance and the intraday return of hedging stocks when hedging...

  • The stock market and investment in the small and open Norwegian economy. Gjerde, Øystein; Knivsflå, Kjell Henry; Sættem, Frode // Empirical Economics;2001, Vol. 26 Issue 3, p565 

    The relationship between the stock market and investment is analyzed by utilizing a multivariate vector autoregressive model, which also includes fundamentals represented by production and the bank interest rate. Two important results appear on the basis of data from the small, open economy of...

  • The 'guaranteed' gift horse has bolted. Blevins, Bill // International Money Marketing;Nov2001, p14 

    Stresses that guaranteed stock market-linked products must be handled with care by investment advisers. Effect of market volatility on the products; Way by which a guaranteed return of capital can be achieved.

  • Analyze the impact of financial variables on the market risk of Tehran Stock Exchange companies. Abadi, Hossein Rezaei Dolat; Fathi, Saeed; Zare, Meysam // Interdisciplinary Journal of Contemporary Research in Business;Feb2012, Vol. 3 Issue 10, p664 

    Given the importance of forecasts in investment decisions, And given that both risk and return on investment are important factors influencing the process, this study measures the financial impact on risk of companies listed on stock market. Thus in order to try to increase the knowledge of...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics