Boston File: Personal Investing Policy

Presenter: Jarrod Wilcox

PERSONAL INVESTING POLICY

Good policies led to good long-term results. In investing, attention to stochastic growth models can provide a foundation for good investment policy. Maximizing expected log after-tax return of discretionary wealth each period is a robust way to set appropriate risk aversion tradeoffs so as to maximize median long-term wealth without intermediate-term shortfalls.

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