RT Journal Article
SR Electronic
T1 A More Efficient Frontier
JF The Journal of Index Investing
FD Institutional Investor Journals
SP 66
OP 70
DO 10.3905/jii.2011.2.1.066
VO 2
IS 1
A1 Craig L. Israelsen
YR 2011
UL https://pm-research.com/content/2/1/66.abstract
AB By combining more asset classes, the slope of the classic efficient frontier steepens considerably—which is good news for investors desiring better risk-adjusted performance. Rather than evaluating a portfolio that simply contains various combinations of cash and large U.S. stocks, a multiple asset portfolio is evaluated in lieu of large U.S. stocks. When substituting a multi-asset portfolio in place of U.S. large stocks, the efficient frontier is significantly steeper, indicating superior risk/return characteristics.TOPICS: Portfolio construction, portfolio theory, wealth management