April 2020 NAPFA Advisor Magazine - Full Issue-April 2020 NAPFA Advisor Magazine

April 2020 NAPFA Advisor Magazine - Full Issue

Pdf Summary

Traditional mean-variance portfolio theory (MPT) has limitations in managing risk due to its assumption of normal asset returns. Enhanced-MPT tools address this by using accurate modeling techniques like copulas and CVAR to assess risk and interrelationships between asset classes. These tools help financial advisors create balanced portfolios with reduced downside risk and better risk-adjusted returns. Several profiles of financial advisors and articles on various topics within the industry are also included in the document.

Keywords

MPT

risk management

enhanced-MPT tools

copulas

CVAR

interrelationships

balanced portfolios

downside risk

risk-adjusted returns

financial advisors