Northwest Passage: Seeking Higher Returns With Lower Risk
May 5, 2016
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By Craig L. Israelsen, PhD
An evaluation of 12 individual market indexes shows how they fared against a portfolio built on 12 asset classes equally weighted, in the context of risk and return from 2001 to 2015. Although the 12-asset model never outperformed the best asset class in any given year, it was shown to strike the optimal balance between higher returns and lower volatility.