Book description
Generate solid, long-term profits with a portfolio allocated for your investing needsAsset allocation is the key to investing performance. Unfortunately, no single approach works perfectly—developing the right balance requires a clear-eyed look at the many models available to you, various investing methodologies, and your or your client’s level of risk tolerance. And that’s where this important guide comes in.
Written by a leading allocation expert from T. Rowe Price, Beyond Diversification provides the knowledge, insights, and approaches you need to make the best allocation decisions for your goals. This deep dive into the how’s and why’s of asset allocation is organized by the three decisive components of a successfully allocated portfolio:
- Return Forecasting discusses the desired return investors seek.
- Risk Forecasting covers the level of risk investors are prepared to assume to achieve that return.
- Portfolio Construction calibrates the stock-bond mix that balances the risks and returns.
Table of contents
- Cover
- Title Page
- Copyright Page
- Dedication
- Contents
- Foreword by Rob Sharps Head of Investments & Group CIO, T. Rowe Price
-
PART ONE
-
Return Forecasting
- 1 Equilibrium and Something About Quack Remedies Sold on the Internet
- 2 Valuation and Something About Kool-Aid
- 3 Shorter-Term Valuation Signals and Something About Coffee and Egg Yolks
- 4 Shorter-Term Macro Signals and Something About Driving a Truck
- 5 Momentum and Something About Horoscopes
- 6 Thoughts on Return Forecasting and Something About the Feelings of Electrons
-
Return Forecasting
-
PART TWO
-
RISK FORECASTING
- 7 Risk-Based Investing and Something About Sailboats
- 8 Longer-Term Risk Forecasting and Something About Dilequants
- 9 Correlations and Something About a Freezer and an Oven
- 10 Correlation Forecasts, Tail Risks, and Something About a Rug
- 11 Fat Tails and Something About the Number of Particles in the Universe
-
RISK FORECASTING
-
PART THREE
-
PORTFOLIO CONSTRUCTION
- 12 Asset Classes Versus Risk Factors and Something About Dr. Strange
- 13 Stocks Versus Bonds and Something About Precision Weapons
- 14 Single-Period Portfolio Optimization and Something About Controlled Substances
- 15 Private Assets and Something About Ostriches
- 16 Active Versus Passive and Something About the “Pharma Bro”
- 17 Sample Portfolios and Something About Gunslingers
-
PORTFOLIO CONSTRUCTION
- Conclusion
- Afterword
- Acknowledgments
- References and Bibliography
- Index
- About the Author
Product information
- Title: Beyond Diversification: What Every Investor Needs to Know About Asset Allocation
- Author(s):
- Release date: November 2020
- Publisher(s): McGraw-Hill
- ISBN: 9781260474886
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