TY - JOUR T1 - Practical Applications of On the Optimal Mix of Active and Passive Investments JF - Practical Applications SP - 1 LP - 3 DO - 10.3905/pa.2016.3.3.141 VL - 3 IS - 3 AU - Stephen A. Buser A2 - Connett, Wendy Y1 - 2016/01/31 UR - https://pm-research.com/content/3/3/1.7.abstract N2 - On the Optimal Mix of Active and Passive Investments Stephen A Buser Determining exactly the dollar amount to allocate to active investments in a client’s portfolio has long been a problem faced by financial advisors and portfolio managers. Stephen Buser, Professor Emeritus at The Ohio State University , has come up with a solution. He proposes a modified version of the Treynor and Black appraisal ratio to identify the exact dollar amount of a portfolio to be allocated to active investments.In an interview with Institutional Investor Journals , Buser discusses incorporating theta to develop the adjusted measure of the appraisal ratio and outlines how the modified ratio provides opportunities for financial advisors, metrics providers and institutional managers. ER -