References for Portfolio Management: Theory & Practice

Below is a by chapter listing for all the links in our Portfolio Management: Theory & Practice publication. Preface Note 09 – A Gentle Introduction to Investing Note 13 – Course Notes for USF Masters of Science in Financial Analysis Chapter One Note 09 – Well-Performing Portfolios and Well-Disguised Insolvency Note 13 – Diversification vs…. Read more »

Investment Quarterly and Fiduciary Forum

Below is a collection of past issues of our Investment Quarterly and Fiduciary Forum.   Investment Quarterly   Investment Quarterly 1999 Q4 Diversification versus New Paradigm Investing Variance Drain: Maximizing Return May Be Hazardous to Your Wealth Portfolio Allocation and Risk Loading Factors Investment Quarterly 2001 Q1 The Great Debate: Behavioral vs. Standard Finance Predictability… Read more »

Money Market Reform: What You Should Know

The ubiquitous money market mutual fund has been a hot topic at the U.S. Treasury Department and the Securities Exchange Commission (SEC) since the Great Recession and Financial Crisis of 2008/2009. The Government’s concerns are based on actions taken by institutional investors during the crisis when a large institutional money market fund could no longer… Read more »

Actuarial Publications: Patrick Collins et al.

A list of published articles on the topics of Life Insurance and Annuities, Irrevocable Life Insurance Trusts and Fiduciary liability for insurance transactions and policy management.   Asset Allocation, Human Capital, and the Demand to Hold Life Insurance in Retirement – Patrick J. Collins, Ph.D., CLU, CFA, and Huy Lam, CFA, Financial Services Review, (Winter,… Read more »

What is the Risk of Avoiding Risk: An Example

Let’s say that you have just accumulated $1,000,000 in your investment savings account. Depending on your family circumstances, here are some questions that you might have: How much can I spend? Where should I put the money? How long will the money last? The first question is the “budget” issue; the second question is the… Read more »

How Much Risk is Suitable for You?

There is a doctrine in law that investments must be suitable. This doctrine underlies much of the consumer protection regulation designed to prevent ‘silver-tongued salespeople’ from scamming unsophisticated investors. You probably have heard or seen ads that promise high returns without investment risk. Indeed, this is the pipe dream of all investors: 15% per year… Read more »

So Who Needs Risk?

The previous blog entry discussed how uncertainty makes risk seem riskier. OK–so what is investment risk? As a general proposition let’s define risk as the possibility of losing some, or all, of your investment principal. The horrible byproduct of taking investment risk is that losses may trigger considerable regret. Had you not taken the risk,… Read more »

Risk and Uncertainty

Understanding investment risk and uncertainty are both important aspects of becoming a prudent investor. As a general proposition, let’s assume that “uncertainty” is a condition that makes individuals more scared of taking risk. When a child is uncertain about how the world works, he or she might be very concerned about what type of monster… Read more »

What is Investing?

Although there are a variety of possible answers—e.g., “risk money to make money”— the best answer is that investing means taking money that you do not wish to spend NOW and sending it into the FUTURE so that it is available for you to spend at a later date. Investing is like stepping into a… Read more »