Using compound annual return as an input in Modern Portfolio Theory (MPT) models is problematic because expected compound returns vary by investment horizon and the degree of risk drag depends on future volatility.

Authors

• Person: Not available Organization: Journal of Financial Planning
  Next Generation Investment Risk Management: Putting the 'Modern ...

Sources

• Next Generation Investment Risk Management: Putting the 'Modern ... www.financialplanningassociation.org Journal of Financial Planning via serper

Referenced by nodes (3)

• investment time horizon concept
• risk drag concept
• volatility concept