Bridging Financial Planning and Factor Investing with Northern Trust's Peter Mladina
Excess Returns
00:00
Common Risk Factors
A common risk factor should have a sound theoretical foundation of based in risk, right? It's explaining variance in the movement up and down in a, you know, in a systematic way. These assets co move systematically. So yeah, putting the two together, we have a compensated source of risk,. We have a return premium. But why is that important? Because I think if you do have aGood well reasoned theory supported by empirical evidence, then you have higher confidence that it'll work going forward.
Transcript
Play full episode
