Asset Allocation: Balancing Financial RiskFinancial experts agree: Asset allocation is the key strategies for maintaining a consistent yet superior rate of investment return. Now, Roger Gibson's Asset Allocation - the bestselling reference book on this popular subject for a decade has been updated to keep pace with the latest developments and findings. This Third Edition provides step-by-step strategies for implementing asset allocation in a high return/low risk portfolio, educating financial planning clients on the solid logic behind asset allocation, and more. |
Contents
| 5 | |
| 10 | |
| 19 | |
| 28 | |
IntermediateTerm Government Bonds | 37 |
Small Company Stocks | 46 |
Comparative Relationships Among Capital Market | 53 |
Statistical Concepts | 65 |
MultipleAssetClass Investing | 158 |
Why Isnt Everyone Doing MultipleAssetClass Investing? | 169 |
Chapter 9 | 177 |
Additional Observations Regarding Optimization | 192 |
Know Your Client | 199 |
Managing Client Expectations | 211 |
Develop a Frame of Reference Regarding Investment | 222 |
Chapter 12 | 247 |
Market Timing | 73 |
Time Horizon | 83 |
Chapter 6 | 96 |
Risks | 102 |
Chapter 7 | 123 |
A More Detailed Discussion of Diversification | 140 |
The Rewards of MultipleAssetClass Investing | 151 |
Prepare an Investment Policy Statement | 263 |
Report Performance and Revise the Portfolio | 273 |
Investment Policy Statement | 280 |
Chapter 13 | 293 |
Sustainable Portfolio Withdrawal Rates | 300 |
Index | 309 |
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Common terms and phrases
1999 Ibbotson Associates arithmetic mean asset allocation asset classes Based on copyrighted bear market Bills and Inflation bull market capital appreciation capital markets client common stocks compound annual return compound return correlation decisions diversification effect equity investments equity REITs equity risk premium example expected return Figure funds GSCI historical holding periods horizon Ibbotson and Sinquefield income interest rate risk interest-generating investments international bonds international stocks investment advisors investment alternatives investment management investment objective investment portfolio investors large company stocks long-term corporate bonds long-term government bonds ment modeled return modern portfolio theory money management Multiple-Asset-Class Investing NAREIT numbers pattern of returns portfo portfolio expected return portfolio volatility Real Estate Investment security selection Sharpe ratio short run Short-term debt investments simple average return small company stocks Standard & Poor's standard deviation stock market Table tion Total Annual Returns total return index volatility level volatility tolerance worldview yield to maturity
Popular passages
Page 81 - Remember that money is of a prolific generating nature. Money can beget money, and its offspring can beget more, and so on.
Page 79 - In investment management, the real opportunity to achieve superior results is not in scrambling to outperform the market, but in establishing and adhering to appropriate investment policies over the long term — policies that position the portfolio to benefit from riding with the main long-term forces in the market.
Page 51 - THE best way to suppose what may come, is to remember what is past.
Page 97 - Everything should be made as simple as possible, but not simpler.
Page 284 - Ph.D. candidate in the Katz Graduate School of Business at the University of Pittsburgh. He holds an MBA from the University of Hawaii, and has seven years of experience in the computer industry.
Page 5 - But farther, not only is there but one way of doing things rightly, but there is only one way of seeing them, and that is, seeing the whole of them, without any choice, or more intense perception of one point than another, owing to our special idiosyncrasies.
Page 81 - He who wishes to be rich in a day will be hanged in a year.
Page 104 - Ibbotson Associates, Inc. All rights reserved. [Certain portions of this work were derived from copyrighted works of Roger G. Ibbotson and Rex Sinquefield...
Page 1 - Let every man divide his money into three parts and invest a third in land, a third in business and a third let him keep in reserve.
Page 204 - A full discussion of these issues is beyond the scope of this chapter, but the implications are important for the interpretation of quantitative indicators. Providing additional resources for disabled students also raises the question of "bottomless pit