QUESTIONS
- What is one advantage of viewing the market as an equity core comprised of various style subsets?
- What are the advantages and disadvantages of a traditional active approach to investing?
- What are the advantages and disadvantages of a passive approach?
- What are the advantages and disadvantages of engineered approaches?
- Name some ways in which an engineered approach can be expanded.
- What factors might influence the optimal level of residual risk an investor should take?
1 See Bruce I. Jacobs and Kenneth N. Levy, “How to Build a Better Equity Portfolio,” Pension Management (June 1996): 36-39.
2 See Bruce I. Jacobs and Kenneth N. Levy, “High-Definition Style Rotation,” Journal of Investing 5, no. 3 (1996): 14-23.
3 See Daniel Kahneman, and Amos Tversky, “Prospect Theory: An Analysis of Decisions Under Risk,” Econometrica 47, no. 2 (1979): 263-292.
4 See Kenneth J. Arrow, “Risk Perception in Psychology and Economics,” Economic Inquiry 20, no. 1 (1982): 1-8.
5 See obert J. Shiller, “Stock Prices and Social Dynamics,” Brookings Papers on Economic Activity 2 (1984): 457-510.
6 See Bruce I. Jacobs and Kenneth N. Levy, “Engineering Portfolios: A Unified Approach,” Journal of Investing 4, no. 4 (1995): 8-14.
7 See Bruce I. Jacobs and Kenneth N. Levy, “20 Myths about Long-Short,” Financial Analysts Journal 52, no. 5 (1996): 81-85.
8 See Bruce I. Jacobs and Kenneth N. Levy,“The Long and Short on Long-Short,” Journal of Investing 6, no. 1 (1997): 73-86.
9 See Bruce I. Jacobs and ...
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