Ed_The_Gypsy
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
(I hope this link paste works):
Does Higher Risk Really Mean Higher Return?
High points of a Morningstar interview with Roger Ibbotson.
First, stuff you already know:
Does Higher Risk Really Mean Higher Return?
High points of a Morningstar interview with Roger Ibbotson.
First, stuff you already know:
- Stocks beat bonds--equity risk premium
- Long bonds beat short bonds--horizon or interest rate premium
- Small stocks beat large stocks--small stock premium
- Value beats growth--value premium
- Lower risk equities outperformed higher risk equities.
- Low beta stocks gave higher returns than high beta stocks.
- Stocks with low share turnover for the previous year outperformed stocks with higher share turnover.
- Low volatility and low beta (low correspondence with the overall market) gave higher returns in six categories of stocks.
- Low liquidity stocks had higher returns than high liquidity stocks.
- Other studies have shown that higher dividend stocks have lower risk and higher return.