RT Journal Article
SR Electronic
T1 Practical Applications of On the Optimal Mix of Active and Passive Investments
JF Practical Applications
FD Institutional Investor Journals
SP 1
OP 3
DO 10.3905/pa.2016.3.3.141
VO 3
IS 3
A1 Stephen A. Buser
A1 Wendy Connett
YR 2016
UL https://pm-research.com/content/3/3/1.7.abstract
AB 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.