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Unformatted text preview: i) Variable asset class proportions ii) Active security selection within each asset class (1) Examples (a) Financial industry - Short Term Changes; (b) Warren Buffet – Long term changes c) B – Passive/ Active i) Fixed asset class proportions ii) Active security selection with each asset class (1) Examples – (a) Institutional Investors – Pension funds, insurance Companies, Endowments (b) FJJ – Frank himself did this – “I’d love to be warren buffet, but I’d also love to do a 360 slam dunk” d) C – Passive/ Passive i) Fixed asset class proportions ii) Index Portfolios within each asset calss e) D – Active/ Passive i) Variable asset calss proportions ii) Index portfolios within each asset class 3) Passive a) Beta = 1 b) R^2 = 100 c) α = 0 d) N = same as index e) Turnover = low f) Expense = low...
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This note was uploaded on 09/08/2010 for the course BUS 172B at San Jose State.