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If you're just starting to manage portfolios, this five-step guide can help you develop investment strategies that demonstrate your value and add to the client's bottom line.
For years, advisors have been using standard deviation to assess portfolio performancewithout realizing that it can lead to false conclusions about risk.
Advisors are beginning to use updated risk-measurement and client-assessment tools to construct their portfolios. And there is a growing belief that neither investors nor markets are rational. It's time for modern portfolio theory to get a tune-up.
Modern portfolio theory has worked long and well for many portfolios, but it has its limitations. Core/satellite construction offers clients a way to indulge in some alpha-producing managers while still controlling costs.
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