Saturday, November 2, 2013

Why Low Beta Stocks Are Like Bonds For Dividend Growth Investors - Seeking Alpha

Why Low Beta Stocks Are Like Bonds For Dividend Growth Investors - Seeking Alpha: Disclosure: I am long AAPL, AFL, BBL, CVX, DRI, HAS, INTC, JNJ, KMB, KMP, KO, LO, MCD, OHI, PEP, PG, PM, T. (More...)

I was reading a paper on Modern Portfolio Theory [MPT] yesterday, and I realized something so obvious that I am embarrassed that it did not occur to me before.

In the paper (Modern Portfolio Theory, Part One), by Donald R. Chambers, who is the Walter E. Hanson/KPMG Professor of Finance at Lafayette College in Easton, Pennsylvania, the author was making some points about the role of bonds in an asset-allocated portfolio. He began with a description of asset allocation.

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