The ultimate market portfolio
Laurens Swinkels, Associate Professor of Finance at Erasmus School of Economics, and Ronald Doeswijk introduced new research to better determine a truer market portfolio. The Financial Times has dedicated an article to this research paper.
The research by Doeswijk and Swinkels presents an updated global market portfolio, using monthly data from 1970-2022 to examine risk and reward over a broader time span than previous studies. They focus on investable assets weighted by market sizes, although the method has limitations. The study finds the global market portfolio generated excess returns of 0.3% per month during this period. The use of monthly data offers nuanced insights into the market's performance.
To continue reading and downloading the article, visit this EUR-webpage.