Future-proof is too hard but we can better meet client needs

Ron Bird | University of Technology Sydney | 23 August 2018 | 0.50 CE

Investors like to have their cake and eat it – that is, they like investment returns (the higher the better), but dislike volatility (particularly negative returns) but they don’t mind positive skewness (the characteristic that causes people to buy lottery tickets even though the expected impact on their wealth is negative). It is possible to engineer investment returns that meet those req...