To help you talk risk with clients, Ron Piccinini, Ph.D., answers some common client questions here. Ron, Covisum’s director of product development, is an expert on quantitative risk modeling, heavy-tailed distributions and risk management.
By, Ron Piccinini, PhD, Director of Product Development
From a risk manager’s perspective, a bank is a derivative on interest rates. Similarly, RIA practices can be viewed as a derivative on stock and bond markets. Here’s a quick way to estimate the sensitivity of your practice to markets.
Advisors, you’ve come to the right place. Join Joe Elsasser, CFP® and Ron Piccinini, PhD, live on November 9 at 3:00 p.m. Central, as they answer your questions about SmartRisk.
By Ron Piccinini, PhDDirector of Product Development
How can you tell if someone went to Harvard? They will tell you within five minutes of meeting them, as the popular joke goes. Similarly, ask any freshly-minted finance MBA or CFA candidate about portfolio construction, and chances are high that you will hear about ‘beta’ in pretty short order. As most advisors know, beta is the key statistic in Modern Portfolio Theory (MPT), and has something to do with the volatility of a stock or asset