March 2005
Intermediate to advanced
264 pages
6h 55m
English
The suggestion has been made that there is little to be gained by investing in more volatile equities (or their equivalents) rather than less volatile equities. To test this hypothesis, a study was undertaken in which the quarterly ranking and rebalancing procedure was carried forth, but this time with a portfolio of mutual funds ranked 1–7 in volatility instead of 1–5. Because the “5” group represents mutual funds that are roughly equal to the Standard & Poor’s 500 Index in volatility, including the 6 and 7 volatility groups brings the total portfolio universe to roughly the equivalent of the S & P 500 Index in volatility, whereas the total 1–5 universe carries ...
Read now
Unlock full access