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Massachusetts special commission recommends system changes

A recently completed report by a special commission into the appropriateness of the Massachusetts retirement system contemplated the defined benefit versus defined contribution benefit design, concluding that the existing defined benefit structure was optimal, in part because it put the portfolio management in the hands of professionals. The report entitled, The Special Commission to Study […]
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No free lunch in asset allocation

In his editorial for the November/December issue of the Financial Analysts Journal, Richard Ennis confidently consigns the term “uncorrelated return” to the scrap heap of asset allocation lingo, reminding readers there is no free lunch in asset allocation, and that in order to collect the risk premium, investors must also bear the risk.
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