Practical Applications of Five Tools for Wealth Managers

Abstract

Overview

Not every private wealth manager has the quantitative expertise to fine-tune the calculations on which they base their portfolio management decisions. William Jennings, Brian Payne, and Thomas O'Malley believe that these financial professionals, working primarily with high-net-worth individuals and families, should incorporate the tools of mathematics and statistics into their practice.

In Five Tools for Wealth Managers , the authors sifted through the literature for their favorite quantitative tools and provide easy-to-use Excel functions related to 1) forecasting returns, 2) dealing with inflation, 3) portfolio diversification, 4) understand return gaps and 5) estimating the “risk of ruin.”