Posts Tagged ‘ investment ’

You’ve got the whole world in your portfolio

December 29, 2011
By
You’ve got the whole world in your portfolio

A famous finance professor once told us that good diversification meant holding everything in the world. Fine, but in what proportion? Suppose you could invest in every country in the world. How much would you invest in each? In a market-capitalization weighted index, you'd invest in each country in proportion to the market value of its investments (its "market capitalization")....

Read more »

Misleading Statistics: Too much risk without a financial adviser?

November 22, 2011
By
Misleading Statistics: Too much risk without a financial adviser?

This popular article references a report by financial consulting firms that makes a fairly convincing argument (even though they mostly neglect inferential statistics, and some parts of their argument are misleading, or otherwise not convincing) that 401(k) participants who accept "help" from financial experts take less risk and have better returns than those who do

Read more »