BACK FROM THE GRAVE
[?]
Submitted by The Capital Spectator
Actually, beta never died, as many have proclaimed over the years. In fact, beta’s never been more influential.
As yours truly detailed in the November issue of Wealth Manager, beta’s very much alive and kicking. What’s more, beta’s at the heart of a number of cutting-edge of a number of portfolio applications in the 21st century.
Beta, of course, is a risk measure that’s pivotal in the Capital Asset Pricing Model, which lays much of the foundation for indexing. Although CAPM is more than 40 years old, this durable theory continues to inspire innovation in portfolio management.
