The Capital Asset Pricing Model (CAPM) forecast used by Wealthfront is constructed based on an estimate of the global market portfolio composition, an estimate of the variance-covariance matrix of asset class returns derived from monthly historical data, and an assumed parameter measuring the risk tolerance of an average investor.

Authors

• Person: Not available Organization: Wealthfront
  Wealthfront Classic Portfolio Investment Methodology White Paper

Sources

• Wealthfront Classic Portfolio Investment Methodology White Paper research.wealthfront.com Wealthfront via serper

Referenced by nodes (1)

• Wealthfront entity