Loading…
Welcome to the Academy of Financial Service’s 2019 Annual Meeting being held in Minneapolis, Minnesota in conjunction with FPA’s Annual Conference 2019. This is the full agenda for AFS. For details on FPA items, visit their Full Schedule. Please report any errors to support@academyfinancial.org.
Wednesday, October 16 • 1:45pm - 2:45pm
F3a Modern Portfolio Theory and the Efficient Markets Hypothesis: How Well Did They Serve Canada’s Baby-boom Generation?

Sign up or log in to save this to your schedule and see who's attending!

Feedback form is now closed.
Modern Portfolio Theory (MPT) and the Efficient Markets Hypothesis (EMH) have influenced portfolio management strategies for an entire generation. Taking the example of an average Canadian family from 1977 to 2016, this paper examines how well MPT and EMH served the baby-boom generation of investors. A model investing strategy was constructed based on the principles of MPT and EMH. The strategy was evaluated for its ability to adequately provide for the subject couple in retirement. Results of this portfolio were compared to other popular investment alternatives. Using generally-accepted rules-of-thumb in financial planning, the MPT strategy was found to have provided an adequate retirement income for the subject couple. Some of the other strategies moderately exceeded the returns of the MPT strategy, while others underperformed this benchmark. Analysis of these discrepancies reinforced the significance of diversificaton and of rebalancing portfolios through dynamic asset allocation.

Author(s): Jim Fischer

Presenters
JF

Jim Fischer

Associate Professor, Mount Royal University


Wednesday October 16, 2019 1:45pm - 2:45pm
202 AB

Attendees (2)