Skip to content

Returns-based style analysis Pros & Cons

February 5, 2018
Pros Cons
  • Characterizes entire portfolio
  • Facilitates comparisons of portfolios
  • Aggregates the effect of the investment process
  • Different models usually give broadly similar results
  • Clear theoretical basis
  • Requires minimal information
  • Can be executed quickly
  • Cost effective
  • May be ineffective in characterizing current style
  • Error in specifying indexes in the model may lead to inaccurate conclusions

 

Advertisements
Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: