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CPP's Volatility, CPP IB's Risk Appropriate Benchmark
The PBO in their report showed that the CPP portfolio outperformed by 1.2% per year on average. So even based on this, it looks like they beat their risk appropriate benchmark. But then we look at the standard deviation for my risk appropriate benchmark is 11%, whereas the 70 30 portfolio is 8.08%. We could have had just a much more aggressive equity portfolio with a similar amount of risk as measured by standard deviation,. which resulted in an substantially higher return.