Tuesday, April 2, 2013

Keeping Alpha and Beta Separate: An Active Manager's Utility Maximization Guidepost

I've created a document summarizing the critical lessons taught by Grinold and Kahn in the inexplicably little-known appendix to chapter 4 of their otherwise famous text, Active Management (McGraw Hill, 2nd Edition 2000). This is critical material. Anyone interested in active management, including market timing, should find it interesting--if for no other reason than that it takes the terse and difficult language of the original and puts it in far more approachable form. This document gives an easy-to-follow mathematical understanding of the differences between alpha and beta--and even active beta.Waring's summary of Grinold's and Kahn's Appendix to Chapter 4, book "Active Management"


  1. This comment has been removed by the author.

  2. Thank you for sharing this informative post with us. Glad to read this post. Keep sharing more content on your article. Keep it up.

  3. To invest in stock exchanges and other financial institutions you need the proper knowledge of the market and trends in shares market. Otherwise you can lose everything you have.