理解Barra Risk Model:Investment Tools History

  • Investment Tools History

    Time States Investment Tools
    1950之前 1. There was no concept of systematic, or market-related, return.
    2. Return was a rise in the value of an asset and risk was a drop in the value of an asset.
    intuition;
    insightful financial analysis
    1950 Risk (as standard deviation) can be divided residual risk and systematic risk;
    non-market-related risk(residual risk) can be minimized, market or systematic risk cannot be eliminated by diversificaiton.

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