Life cycle investing, holding periods, and risk

Authors
Hickman, K Hunter, H Byrd, J Beck, J Terpening, W
Citation
K. Hickman et al., Life cycle investing, holding periods, and risk, J PORTFOLIO, 27(2), 2001, pp. 101
Citations number
6
Categorie Soggetti
Economics
Journal title
JOURNAL OF PORTFOLIO MANAGEMENT
ISSN journal
00954918 → ACNP
Volume
27
Issue
2
Year of publication
2001
Database
ISI
SICI code
0095-4918(200124)27:2<101:LCIHPA>2.0.ZU;2-E
Abstract
This article examines the relative performance of bills, bonds, and stocks over various holding periods. Using a resampling technique that accounts fo r the cross-sectional correlation between security classes, the authors fin d that the risk of underperformance for a strategy of investing in higher r isk classes of investments is minimal over long holding periods, while the rewards are substantial.