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Record W2770921054 · doi:10.3905/jpm.2015.41.4.068

Implied Expected Returns and the Choice of a Mean–Variance Efficient Portfolio Proxy

2015· article· en· W2770921054 on OpenAlexaff
David Ardia, Kris Boudt

Bibliographic record

VenueThe Journal of Portfolio Management · 2015
Typearticle
Languageen
FieldEconomics, Econometrics and Finance
TopicFinancial Markets and Investment Strategies
Canadian institutionsUniversité Laval
Fundersnot available
KeywordsPortfolioProxy (statistics)Variance (accounting)EconometricsEconomicsCovariance matrixVariance risk premiumMarket portfolioCovarianceModern portfolio theoryPortfolio optimizationMathematicsFinancial economicsStatisticsVolatility (finance)Stochastic volatilityVolatility risk premium

Abstract

fetched live from OpenAlex

Implied expected returns are the expected returns for which a supposedly mean–variance efficient portfolio is effectively efficient, given a covariance matrix. The authors analyze the properties of monthly implied expected stock returns and study their sensitivity to the choice of mean–variance efficient portfolio proxy. For the universe of S&P 100 stocks over the period from 1984 to 2014, they find that using as risk-based portfolio proxy with respect to a market capitalization or fundamental value portfolio brings its biggest gains in return forecasts’ stability and precision. For all the proxies considered, they report that the implied expected returns outperform forecasts based on a time-series model in stability and precision. TOPICS:Portfolio management/multi-asset allocation, factor-based models, mutual funds/passive investing/indexing

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

How this classification was reachedexpand

Full frame machine prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. The Gemma side is a direct model label for every work in the frame, read from the title-only record. The Codex side is a classifier learned from the 10,348 direct Codex labels and calibrated to design-weighted sample rates; fields without enough sample support carry no Codex call. Candidate is the union of the two sides; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels.

metaresearch head score (Codex)0.006
metaresearch head score (Gemma)0.060
Version: metacan-v3-hybrid-931329e0061cValidation status: machine_predicted_unvalidated
Candidate categoriesnone
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Simulation or modeling · Consensus signal: Simulation or modeling
GenreCandidate signal: Empirical · Consensus signal: Empirical
Teacher disagreement score0.006
Threshold uncertainty score0.034

Distilled classifier scores by category (both heads)

CategoryCodexGemma
Metaresearch0.0060.060
Meta-epidemiology (narrow)0.0000.000
Meta-epidemiology (broad)0.0010.001
Bibliometrics0.0010.002
Science and technology studies0.0000.001
Scholarly communication0.0030.003
Open science0.0010.001
Research integrity0.0010.001
Insufficient payload (model declined to judge)0.0010.000

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.032
GPT teacher head0.232
Teacher spread0.200 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it

Classification

machine, unvalidated

Machine predicted; a candidate call from one source (direct Gemma or distilled Codex), not a consensus.

The models applied no category: nothing in the taxonomy fit this work.
Study designSimulation or modeling
Domainnot available
GenreEmpirical

How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".

Quick stats

Citations0
Published2015
Admission routes1
Has abstractyes

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