Sentences with phrase «returns of each asset class»

Beta can be defined as the excess returns of an asset class over the risk - free rate.

As the graphic suggests, you take the percentage allocation times the expected return of the asset class to estimate that asset's impact on the portfolio.

Stocks, over the long term, offer the most consistent and reliable returns of any asset class.

Over the long term, stocks deliver the highest returns of any asset class.

The important point is that investors are rewarded for taking systematic risk: it is the reason stocks have the highest long - term returns of any asset class.

That is why it is important to not look at what a particular rate of return of an asset class in comparison to a CVLI policy.

History shows stocks have generated the best returns of any asset class over the long run within North America — but they are volatile in the short run and investors who track things too closely are more likely to be frightened out of their positions prematurely.

Indexes represent the average return of an asset class, with all of its warts and wrinkles.

Hypothetical returns of each asset classes» current mutual fund pick, compared to its benchmark index are on the table mid-page here.

For many of you, I think the safer and better course of action is to allocate certain assets, particularly retirement, to passively - managed products which will track the long - term returns of the asset classes in which they are invested.

While the theoretical underpinnings of modern portfolio theory are complex, there are two main objectives: Firstly, efficient portfolios capture the return of each asset class represented — nothing more and nothing less.

Moreover, different forecasts may choose different indices as a proxy for the same asset class, thus influencing the return of the asset class.

In this next example you'll view the returns of each asset class along with a stock and bond combined portfolio.

The term may be new, but the idea isn't: it's about looking for ways to capture the returns of an asset class with a strategy other than traditional cap - weighting.

Three: Index funds offer something you'll never get in an actively managed fund: a guarantee to give you the return of an asset class, less only relatively low expenses.

Viewing the returns of both asset classes, corporate and municipal bonds, from the perspective of returns after taxes reverses the trend.

While the theoretical underpinnings of modern portfolio theory are complex, there are two main objectives: Firstly, efficient portfolios capture the return of each asset class represented — nothing more and nothing less.

Index fund: a mutual fund or ETF that attempts to match the returns of an asset class or market segment by holding all the stocks or bonds in an index

That's an impressive result for a family of funds that simply try to capture the returns of an asset class with no attempt to beat the market.

Where it was available, I've also included their average estimate for the returns of that asset class, followed by the actual index return for 2011.

Are based on historical performance characteristics, which include the expected future return, the expected future volatility (risk) of the return, and how the returns of assets classes perform relative to each other.

Passive managers seek to deliver the returns of an asset class or sector of the market.

He also discusses the case for attractive long - term returns of asset classes, including equities.

In a number of cases, we have had to approximate the returns of the asset classes using other indexes.

Although all disclosure statements from investment advisory firms are required to state that «past performance does not guarantee future results,» studying the long - term past can better characterize both the risks and returns of asset classes and empower individuals to make better choices.