Is popularity dangerous? A new study suggests that investors seeking extra return on a portfolio without taking on more risk may be able to get it by selecting unpopular equities.
The study authored by Roger Ibbotson, Yale finance professor emeritus, and Tomas Idzorek, president of Morningstar Investment Management takes as its starting point a basic premise: Risk is unpopular. As a result, all other things being equal, investors only take on more risk for a higher expected return.
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