Long Run Equity Return in GGM/Grinold Kroner Framework
In reading 10, the curriculum introduces the following equation. The equation ties the trend growth rate to the value of …
Business Cycles in an Capital Market and Macroeconomic Framework
Business cycles are fluctuations in economic activity that follow a wave like pattern. While generally simplified into a single wave, …
Applied Duration Concepts Review
Duration is the sensitivity of the price of a bond or portfolio to a change in interest rates. Unlike time …
Life Insurance Pricing Example
The net payment cost index assumes that the insured person will die at the end of a specified period, such …
Types of Active Management Strategies
Active equity investing may reflect a variety of ideas about profitable investment opportunities. However, with regard to how these investment …
Index Construction Methodologies
The construction of an index starts with the method of identifying stocks to include; this method can be exhaustive (every stock in …
Evaluating Managers
Investment Philosophy The entire investment process should be driven by a succinct and precise investment philosophy. Some managers believe that …
Quantitative Elements
Style Analysis Style analysis examines the manager’s risk exposures in relation to an appropriate benchmark and the changes in those …
Investment Manager Selection Framework
Evaluating an investment manager is a complex and detailed process that encompasses a great deal more than analyzing investment returns. …
Performance Appraisal
Investment performance appraisal identifies and measures investment skill, providing the information to assess how effectively money has been invested given …