Friday, June 09, 2006

ERISA 404(C) Context for Diversification

W Scott Simon explains how the "broad range" diversification requirements of ERISA 404(c) are tied to Modern Portolio Theory. Key points; evaluate investment risk relative to the entire portfolio rather than on a standalone fund basis & minimize risk at the portfolio level by diversifying both across asset classes (horizontal) and within each asset class (vertical).

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