Summary of Sebastien Page's Beyond Diversification

Please note: This is a companion version & not the original book. Book Preview:

#1 Investing is about forecasting returns. It is hard to call yourself an investor if you don’t think you have insights about expected returns. There are many ways to estimate expected returns, from fundamental to quantitative approaches and everything in between.

#2 The challenge of combining fundamental and quantitative approaches is how to marry them. I will make suggestions in this chapter.

#3 The capital asset pricing model is a basic way to estimate expected returns for investors. It links expected returns to an objective measure of risk and current interest rate levels. However, there are issues with the model.

#4 The Capital Asset Pricing Model is a theory that was developed to explain the relationship between risk and return, but it has been criticized for its flaws. It was developed by Nobel Prize winners William Sharpe and John Markowitz, but many academics have argued that it is flawed.

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Rafbók: 12 maj 2022