Coronavirus (COVID-19) News and Resources
Coronavirus (COVID-19) Webcasts
Subscribe to Free Daily Newsletters
Post a Job

Featured Jobs

ESOP Valuation Writer
Unique ESOP Valuation Provider
Enrolled Actuary
Loren D. Stark Company logo
Loren D. Stark Company

Free Daily News and Jobs

“BenefitsLink continues to be the most valuable resource we have at the firm.”

-- An attorney subscriber

Get the BenefitsLink app LinkedIn

<< Previous news item   |   Next news item >>

A 401(k) Fiduciary Dilemma: The Risk of Using Volatility to Define Risk
Fiduciary News Link to more items from this source
May 28, 2014
"[T]he leading thinkers in the financial industry have long used the elegance of statistics -- specifically, standard deviation as a measure of volatility -- to frame the definition of risk. It worked so cleanly on the blackboards of academia that it just had to be used in the boardrooms of America. There was only one problem. The theory was wrong.... And that's a problem for 401k plan sponsors who rely on the investment industry to design menu options and advise participants. More importantly, if the old paradigm is dead, what new paradigm has replaced it?"

Please click here to report this link if it is broken (for example, if you see a "404 File Not Found" error message after you click on the link above).
An important word about authorship: BenefitsLink® is providing a hypertext link to the item shown above, but is not the author of the item (unless otherwise specified).
© 2020, Inc.