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Just because the returns are lower doesn't necessarily mean it's a bad strategy. As MPT states, as long as the returns are un-correlated to the stock market th
by pembrook 8y ago
Just because the returns are lower doesn't necessarily mean it's a bad strategy.
As MPT states, as long as the returns are un-correlated to the stock market they can improve the risk-adjusted returns to a portfolio. Even if the return is lower (but still positive).
- jnwatson 8y agoThe problem is that it isn’t all that uncorrelated. Prosper tanked hard in the financial collapse.