Page 225

225

Step 11: Risk Exposure

Step 11: Risk Exposure

“We can extrapolate from the study that for the longterm individual investor, who maintains a consistent asset allocation and leans toward index funds, asset allocation determines about 100% of performance.” – Roger Ibbotson, Ph.D., Ibbotson Associates, “The True Impact of Asset Allocation on Returns,” 2000

“Diversification is your buddy.” – Merton Miller, Ph.D., Nobel Laureate in Economics, 1990, Wheelerwrites.com, May 30, 2012

“A good portfolio is more than a long list of good stocks and bonds. It is a balanced whole, providing the investor with protections and opportunities with respect to a wide range of contingencies.” – Harry Markowitz, Ph.D., Nobel Laureate in Economics, 1990, Professor of Economics UCSD, “Portfolio Selection: Efficient Diversification of Investments,” 1959

“Investment planning is about structuring exposure to risk factors.” – Gene Fama, Jr., “The Error Term,” 2001

Index Funds: The 12-Step Recovery Program for Active Investors  

This book reveals the potential land mines and pitfalls of active investing and educates readers on the benefits of passive investing with i...

Read more
Read more
Similar to
Popular now
Just for you