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risk


Where’s the Beef?! Is Your Low-Fee Smart Beta Product Ripping You Off?
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So what do hamburgers and price per pound have to do with equity-oriented long-only smart beta products? A lot more than you think.

How to Best Gauge Your Risk Tolerance
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How often do you check your investment performance? The answer goes a long way in determining your risk tolerance.

The Benefits and Risks of Target Date Funds (TDFs)
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What is the optimal amount of risk a client should have in their portfolio throughout their career? This is not an easy question to answer, so it is not surprising that there are many different responses. Target date funds (TDFs) are, in theory, simple products that allow clients to focus on a single question: “How old am I?”

Integrating Water Risk Analysis into Portfolio Management
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Water risks can lead to unlimited financial impact and loss. Have you embedded water risk analysis into your portfolio management process? There are a number of increasingly sophisticated approaches that investors can take.

Three Reasons Why It Is Still a Good Time to Talk about Inflation
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Is it time to put conversations about inflation risk on the back burner? Questions like this illustrate a major flaw in the way many investors approach protecting their portfolios against inflation risk: Discussion starts only after rising inflation is already a problem and inflation hedges are expensive.

Estimating Variations in the Equity Risk Premium: A New Approach
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For years, researchers have used historical returns as proxies for estimating equity risk premium. This approach is problematic, however, because the resulting estimates don't vary from one year to the next, even though equity market returns can be wildly divergent from year to year. Katsunari Yamaguchi, CFA, has developed a new method for estimating equity premiums.

Building a Better Risk Model
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When Ignacio Ruiz and his associates, Piero Del Boca and Ricardo Pachón, looked at the current models for directional-way risk, they found that the models were impossible to calibrate. So, they set about creating their own model.

Book Review: A Risk Professional’s Survival Guide
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This highly readable and informative book can serve the needs of a variety of individuals. The end-of-chapter problems make the book suitable for a classroom setting for those who plan to become practicing risk managers. Readers interested in gaining a general overview of risk management will also find the book valuable.

Liquidity Risks of the H2O Variety
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"Whiskey is for drinking; water is for fighting over." In these increasingly water-constrained times, this quote is as relevant as ever. The fact is water — or the lack of it — poses investor risks. Companies and investors can no longer ignore increasing competition over limited water resources.

The Battle for Your Strategic Soul: Knight vs. Coase
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Today, strategy adds value when it understands and exploits uncertainty better than the competition. Pure efficiency can no longer be the only way.