Archive for May 29th, 2008
Small cap: is the pain worth the gain?
Posted by: investment-fiduciary on: May 29, 2008
Over the last 60 years, the simple average annual return of the Fama/French benchmark small-cap portfolio* was 16.3%. For the same period, the large-cap portfolio* was only 12.76%. Do you think small cap beat large cap by a wide margin? I put my mathematician’s hat on to find out.
Volatility shrinks the [...]
Author
Michael Zhuang is principal of MZ Capital, a fee-only RIA and DFA-approved advisor based in Washington, DC. He is also a regular contributor to Morningstar Advisor. Michael can be reached at info1@mzcap.com.
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