The Sortino framework for constructing portfolios: focusing on desired target returnt to optimize upside potential relative to downside risk

The most common way of constructing portfolios is to use traditional asset allocation strategies, which match the client's risk appetite to a weighted allocation strategy of fixed income, equities, and other types of assets. This method focuses on how the money is allocated, rather than on future returns. The Sortino method presents an innovative change from this traditional approach. Rather than using the client's risk as the main factor, this method uses the client's desired return.The goal is what the investor is trying to accomplish financially, such as a certain level of income in retirement or putting childrenthrough college.

• ISBN: 978-0-12-374992-5
• Editorial: Academic Press
• Encuadernacion: Cartoné
• Páginas: 176
• Fecha Publicación: 04/12/2009
• Nº Volúmenes: 1
• Idioma: Inglés