LVHD - The Low-Volatility Factor And Occam's Razor
2024-02-17 03:50:00 ET
Summary
- The low-volatility premium may be the most compelling anomaly in financial markets - less risky securities outperform their riskier counterparts over the long term.
- Since the low volatility factor defies a risk-based explanation, academics who believe in efficient markets have trouble accepting it.
- Amid low demand for defensive investing during the recent tech-driven market rally, the case for low-volatility investing may be stronger than ever.
The low-volatility premium may be the most compelling anomaly in financial markets : Less risky securities outperform their riskier counterparts over the long term....
The Low-Volatility Factor And Occam's Razor