Measuring risk is a risky business
Article Abstract:
Historical volatility measures are commonly employed to systematically compare and assess different investments or managers. The four widely used variables for measuring the historical volatility of investments are standard deviation, range of returns, multiple sigma events and downside risk. Plan sponsors would do well to apply different risk measures because individual measures only have limited interpretive ability. Common problems that should be avoided are those dealing with issues such as consistency with plan design, time horizon of measurement and special investments, and illiquid assets.
Publication Name: Pension Management
Subject: Human resources and labor relations
ISSN: 1078-9766
Year: 1996
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Experts discuss 401(k) investment issues
Article Abstract:
Nine experts on pension management are consulted concerning fiduciary and investment issues. The possibility of employees retiring with inadequate retirement savings may be avoided by having employers provide adequate investment education to employees. The optimum number of investment options in a 401(k) plan may depend upon the plan sponsor. However, investment professionals estimate that about three to 10 investment classes are recommended.
Publication Name: Pension Management
Subject: Human resources and labor relations
ISSN: 1078-9766
Year: 1996
User Contributions:
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