The simple diversification ratio PDR is a tool that can be used to find investment options in a 401k Plan that increase diversification by focusing on investment options that are not highly correlated. These may not be
This is a good 401k and the Employee portfolio with 47% invested in company stock YUM has a higher Sharpe ratio than the Balanced portfolio. That’s too much of a good thing but if I were a
This portfolio was used in a design study of a few of my Roth Ira holdings to compute the Portfolio Diversification Ratio PDR for different 4 option portfolios using 3yr, 5yr and 10yr Market Data. They all had the same PDR ( 0.6
The INTEL 401k Plan a few years ago had way to many options. The Scan this year shows I think a much improved 401k options line up that is more diverse. The stock has improved too.