{"product_id":"the-intelligent-portfolio-isbn-9780470228043","title":"The Intelligent Portfolio","description":"\u003ci\u003eThe Intelligent Portfolio\u003c\/i\u003e draws upon the extensive insights of Financial Engines—a leading provider of investment advisory and management services founded by Nobel Prize-winning economist William F. Sharpe—to reveal the time-tested institutional investing techniques that you can use to help improve your investment performance. Throughout these pages, Financial Engines’ CIO, Christopher Jones, uses state-of-the-art simulation and optimization methods to demonstrate the often-surprising results of applying modern financial economics to personal investment decisions. \u003cp\u003eForeword ix\u003c\/p\u003e \u003cp\u003ePreface xi\u003c\/p\u003e \u003cp\u003eAcknowledgments xvi\u003c\/p\u003e \u003cp\u003eIntroduction to Financial Engines xviii\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 Now it’s Personal 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eA Changing World 2\u003c\/p\u003e \u003cp\u003eThe Grand Social Experiment: 401(k) 6\u003c\/p\u003e \u003cp\u003eThe Knowledge Gap 7\u003c\/p\u003e \u003cp\u003eThe Traditional Advice Model 8\u003c\/p\u003e \u003cp\u003eInstitutional Tools of the Trade 10\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 No Free Lunch 25\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eI’ll Take the one with the Highest Return. . . 26\u003c\/p\u003e \u003cp\u003eA Little Bit of Latin: Ex-Ante and Ex-Post 28\u003c\/p\u003e \u003cp\u003eHow are the Prices of Risky Assets Set? 29\u003c\/p\u003e \u003cp\u003eThe Link Between Risk and Return 31\u003c\/p\u003e \u003cp\u003eWhen High Risk does not Mean High Return 34\u003c\/p\u003e \u003cp\u003eHidden Risks and the Peso Problem 36\u003c\/p\u003e \u003cp\u003eHow Much Risk Am I Taking? 38\u003c\/p\u003e \u003cp\u003eRisks and Returns of Different Assets 42\u003c\/p\u003e \u003cp\u003eDoes it Pass the Blush Test? 47\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 History is Bunk 49\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eHistory and Expected Returns 51\u003c\/p\u003e \u003cp\u003eThe Past is not the Future 52\u003c\/p\u003e \u003cp\u003eHistory is Sometimes not What it Seems 55\u003c\/p\u003e \u003cp\u003eInvesting with Perfect Hindsight 57\u003c\/p\u003e \u003cp\u003eThe Lucky and the Skillful 60\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 The Wisdom of the Market 73\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Efficient Market? 74\u003c\/p\u003e \u003cp\u003eWhat is the Market Portfolio? 78\u003c\/p\u003e \u003cp\u003eWhat does the Market Portfolio Look Like? 79\u003c\/p\u003e \u003cp\u003eThere’s no Place Like Home 81\u003c\/p\u003e \u003cp\u003eHistory of the Market Portfolio 83\u003c\/p\u003e \u003cp\u003eBetting Against the Market 85\u003c\/p\u003e \u003cp\u003eAvoiding Unintentional Bets 87\u003c\/p\u003e \u003cp\u003eRisk and the Market Portfolio 89\u003c\/p\u003e \u003cp\u003eThe Market’s View of Future Returns 91\u003c\/p\u003e \u003cp\u003eMarket Portfolio Simulations 97\u003c\/p\u003e \u003cp\u003eFinal Thoughts 98\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 Getting the Risk Right 101\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eHow to Measure Risk 103\u003c\/p\u003e \u003cp\u003eAsset Mix and Short-Term Loss 106\u003c\/p\u003e \u003cp\u003eRisk and Portfolio Outcomes 109\u003c\/p\u003e \u003cp\u003eRisk and Time Horizon 113\u003c\/p\u003e \u003cp\u003eFactors to Consider in Selecting a Risk Level 120\u003c\/p\u003e \u003cp\u003eExamples of Informed Investor Behavior 121\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 An Unnecessary Gamble 125\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eA Different Sort of Beast 128\u003c\/p\u003e \u003cp\u003eThe Risk of Individual Stocks 130\u003c\/p\u003e \u003cp\u003eThe Implications of Individual Stock Risk 132\u003c\/p\u003e \u003cp\u003eExpected Growth Rates 136\u003c\/p\u003e \u003cp\u003eThe Biggest Mistake in Retirement Investing 142\u003c\/p\u003e \u003cp\u003eWhat About More Than One? 144\u003c\/p\u003e \u003cp\u003eDo You Feel Lucky? 149\u003c\/p\u003e \u003cp\u003eHow to Invest in Stocks Safely 150\u003c\/p\u003e \u003cp\u003eHidden Costs 152\u003c\/p\u003e \u003cp\u003eDealing with Unwanted Stock Risk 154\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 How Fees Eat Your Lunch 157\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIt’s Basic Arithmetic 158\u003c\/p\u003e \u003cp\u003eBig Business 160\u003c\/p\u003e \u003cp\u003eFor Every Winner there Has to Be a Loser 161\u003c\/p\u003e \u003cp\u003eIt Still Adds Up to Dollars 164\u003c\/p\u003e \u003cp\u003eA Wide, Wide World 167\u003c\/p\u003e \u003cp\u003eHow Fees Eat Your Lunch 168\u003c\/p\u003e \u003cp\u003eIt’s a Heavy Load to Bear 175\u003c\/p\u003e \u003cp\u003eFees and the Bigger Picture 176\u003c\/p\u003e \u003cp\u003ePractical Considerations 179\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 Smart Diversification 183\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Goals of Diversification 184\u003c\/p\u003e \u003cp\u003eThe Big Picture 185\u003c\/p\u003e \u003cp\u003eWhy Hierarchy is Bad for Portfolios 189\u003c\/p\u003e \u003cp\u003eThe Value of Asset Class Diversification 193\u003c\/p\u003e \u003cp\u003eDiversification Ain’t What it Used to Be 197\u003c\/p\u003e \u003cp\u003eDiversification and Investment Choices 198\u003c\/p\u003e \u003cp\u003eThe Big Picture: Part II 205\u003c\/p\u003e \u003cp\u003eThe Search for Better Diversification 211\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 Picking the Good Ones 221\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Stuff that Matters 224\u003c\/p\u003e \u003cp\u003eIt’s About the Future 227\u003c\/p\u003e \u003cp\u003eRisk Tolerance and Fund Choice 227\u003c\/p\u003e \u003cp\u003eInvestment Style 228\u003c\/p\u003e \u003cp\u003eFund Expenses 232\u003c\/p\u003e \u003cp\u003ePredicting Mutual Fund Performance 233\u003c\/p\u003e \u003cp\u003eRating Funds 236\u003c\/p\u003e \u003cp\u003ePutting the Pieces Together 257\u003c\/p\u003e \u003cp\u003eWhat it Takes to Rank Among the Best 259\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10 Funding the Future 263\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Benefits of Being Flexible 264\u003c\/p\u003e \u003cp\u003eTaxable and Tax-Deferred Savings 266\u003c\/p\u003e \u003cp\u003eHow Much do you Need? 269\u003c\/p\u003e \u003cp\u003eFrom Wealth to Income 271\u003c\/p\u003e \u003cp\u003eThe Myth of Absolutes 275\u003c\/p\u003e \u003cp\u003eRisk, Time, and Savings 281\u003c\/p\u003e \u003cp\u003eWhat it Takes to Get there 291\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 11 Investing and Uncle Sam 295\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhy you don’t Want to Minimize Taxes 297\u003c\/p\u003e \u003cp\u003eHow Taxes Impact Investment Returns 298\u003c\/p\u003e \u003cp\u003eThe Impact of Personal Tax Rates 301\u003c\/p\u003e \u003cp\u003eTax Efficiency of Asset Classes 303\u003c\/p\u003e \u003cp\u003eAsset Placement 306\u003c\/p\u003e \u003cp\u003eMutual Fund Tax Efficiency 308\u003c\/p\u003e \u003cp\u003eMunicipal Bonds 312\u003c\/p\u003e \u003cp\u003eCapital Gains and Losses 316\u003c\/p\u003e \u003cp\u003ePutting it All Together 319\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 12 Wrapping it Up 321\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAppendix The Personal Online Advisor 331\u003c\/p\u003e \u003cp\u003eNotes 335\u003c\/p\u003e \u003cp\u003eGlossary 347\u003c\/p\u003e \u003cp\u003eAbout the Author 357\u003c\/p\u003e \u003cp\u003eIndex 359\u003c\/p\u003e  \"The irreverence [Jones] displays toward history as a predictor for investment is one of dozens of viewpoints that fly in the face of conventional portfolio-building wisdom.\" --\u003ci\u003eThe Star-Telegram\u003c\/i\u003e  \u003cp\u003e\"A very comprehensive book which covers risk versus rewards, past performance versus future expected returns, market timing versus long term investing, and investing in individual stocks versus investing in mutual funds. He also discusses diversification, fees and expenses, and the tax consequences of investing. All of his recommendations are backed up with extensive research and presented in an easy-to-understand manner.\"--\u003ci\u003eStockerblog\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHRISTOPHER L. JONES \u003c\/b\u003eis Chief Investment Officer and Executive Vice President of Investment Management for Financial Engines. Working closely with founder William F. Sharpe, Jones built and led the team of experts in finance, economics, and mathematics that developed the financial methodology for Financial Engines’ personalized investment advice and management services. Jones has led the investment management function at Financial Engines for more than a decade. He holds an MS in business technology, an MS in engineering-economic systems, and a BA in quantitative economics, all from Stanford University.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eFINANCIAL ENGINES, INC.,\u003c\/b\u003e is a leading provider of personalized investment advisory and management services to investors in workplace retirement plans. The company provides advisory services to more than 6.8 million employees, including workers at 109 Fortune 500 companies. In addition, Financial Engines manages more than $16 billion in defined contribution assets for individual employees as of year-end 2007. All advisory services are provided by Financial Engines Advisors L.L.C., an independent registered investment advisor and subsidiary of Financial Engines, Inc. Financial Engines does not receive compensation based on the investments it recommends.  \u003c\/p\u003e\u003cp\u003eThe key to good investment decisions is making informed choices. And while you cannot predict the future, it is possible to create investment strategies that can maximize your chances of success. In \u003ci\u003eThe Intelligent Portfolio\u003c\/i\u003e, author Christopher Jones shows you how this can be accomplished.\u003c\/p\u003e \u003cp\u003eWritten with the thoughtful investor in mind, \u003ci\u003eThe Intelligent Portfolio\u003c\/i\u003e draws upon the extensive insights of Jones and Financial Engines—a leading provider of investment advisory and management services founded by Nobel Prize-winning economist William F. Sharpe—to reveal the time-tested institutional investing techniques that individuals can use to help improve their investment performance. Throughout these pages, Financial Engines’ Chief Investment Officer, Christopher Jones, uses state-of-the-art simulation and optimization methods to demonstrate the often-surprising results of applying modern financial economics to personal investment decisions. By illustrating the realistic range of possible investment outcomes, Jones skillfully reveals how the decisions you make today can impact your financial future. \u003c\/p\u003e\u003cp\u003e \u003c\/p\u003e\u003cp\u003eChallenging conventional wisdom that often leads both novice and experienced investors astray, \u003ci\u003eThe Intelligent Portfolio\u003c\/i\u003e builds from basic intuition on how financial markets function to practical tips on evaluating investment trade-offs and real-world advice on selecting investments to better reach your goals. \u003c\/p\u003e\u003cp\u003eAlong the way, you’ll be introduced to the proven principles—a mix of common sense and counterintuitive concepts—that will put you in a better position to succeed, including: \u003c\/p\u003e\u003cul\u003e\n\u003cli\u003eRecognizing the link between risk and reward\u003c\/li\u003e \u003cli\u003eLeveraging the wisdom of the market\u003c\/li\u003e \u003cli\u003eMinimizing losses due to investment fees\u003c\/li\u003e \u003cli\u003eAvoiding the risks of stock picking\u003c\/li\u003e \u003cli\u003eSelecting funds using relevant forward-looking criteria\u003c\/li\u003e \u003cli\u003eUnderstanding how to realistically fund financial goals\u003c\/li\u003e \u003cli\u003eInvesting tax-efficiently\u003c\/li\u003e \u003cli\u003eAnd much more …\u003c\/li\u003e\n\u003c\/ul\u003e \u003cp\u003eIn addition to the information outlined throughout this book, you’ll also receive a fee waiver for a one-year investment advisory account at FinancialEngines.com, so that you may apply what you’ve learned here to your own investment endeavors. \u003c\/p\u003e\u003cp\u003eThrough simple explanations of powerful investment ideas and real-world examples that bring them to life, \u003ci\u003eThe Intelligent Portfolio\u003c\/i\u003e reveals what you need to know when making personal investment decisions. With this book as your guide, you’ll quickly discover how you can effectively implement the strategies that institutional investors have known for decades—helping you achieve a brighter financial future.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47990266495205,"sku":"NP9780470228043","price":27.95,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780470228043.jpg?v=1761787126","url":"https:\/\/k12savings.com\/es\/products\/the-intelligent-portfolio-isbn-9780470228043","provider":"K12savings","version":"1.0","type":"link"}