error (AFCTE), 384 Absolute return strategy, 444 Accounting agents, valuations, 289-290 Active management: characteristics of, generally, 22, 25-26,105,154, 181 country allocation strategy, 445-446 currency allocation strategy, 446 duration timing strategy, 444 goal of, 212 risk budgeting and, 446-451 sector allocation strategy, 445 security selection strategies, 445 yield curve positioning strategy, 444-445 Active portfolio, defined, 374-375 Active return, 174 Active risk: correlations of, 479-480 implications of, 26, 153, 168 investments, structured vs. traditional, 198-199 management, structured vs. traditional, 193-197 management selection, 199-209 in risk budget, 171-185 Active trading, 125 Actuarial decision analysis, 418 Actuarial mortality tables, 111 Administration costs, 411 After-tax wealth: after-tax returns, calculation of, 541-544 appreciation, 539 capital gains, 536-539, 541-542 components of, 534 estate tax, 537-538, 544-545 gift tax, 537-538 income tax, 536 inflation, 540-541, 545, 564 planning framework, 535-536 spending, 540-541, 545, 562 subsidies, 539 taxation considerations, 536-540, 544 transfer tax, 537, 544-545 Agency bonds, 99 Aggressive investors/trades, 10, 431-432,558,560 Allocation, see Asset allocation Alpha, 154,159,174-179,181,185, 188, 275-277, 343, 387, 457, 498, 501,510,524-525,530 Alternative asset classes: characteristics of, 153 global tactical asset allocation (GTAA), 455-482 hedge funds, portfolio management, 501-515 private equity investments, 516-530 strategic asset allocation, hedge funds, 483-500 Altvest, 486 American depositary receipts (ADRs), 319,376 Analyst earnings estimate anomaly, 421 Annual growth rate, 50 Annual returns, 547, 554-558 Annuities, 568 Appreciation, 539, 548, 565, 579, 582 Arbitrage, 490 Arbitrage trading, 295