Tuesday, January 14, 2014
2013 401k Plans Balanced Portfolios
This year all the 401k Plan scans included covariance in the calulation of standard deviation to account for the fact that all portfolio investment options performance are correlated in their market performance. That increased the average standard deviation by almost 100% as you can see. In prior years I was unable to compute the correlation matrix for the thousands of investment options in 401k Plans.
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