Daily Archives: Apr 30, 2014 at 01:19 pm EST

Projecting Risk Premia For The Major Asset Classes

What’s your return expectation for your investment portfolio? That’s a tough question to answer because there are many ways to estimate future performance. Meanwhile, let’s not forget that every forecast is probably wrong in some degree and so it’s a good idea to crunch the numbers from multiple angles. As a first step with modeling multi-asset-class strategies, I like to begin with what’s known as equilibrium risk premiums.
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