split, 104, 109-110, 124 Bond futures, 414, 470^71 Bond investments, see Bond portfolio Capital Asset Pricing Model fCAPM), 40 portfolio risk, 36-38 Bond market: after-tax wealth applications, 558-564 annual returns, 547, 554-558 historic returns, 546-550 inflation, impact on, 547, 549-553 investment horizon, 558 risk-adjusted returns, 553-554 Bond portfolio, generally: duration of, 110, 112,123-125,130, 436 liabilities, 114 Book-to-market equity, 422 Book-to-price (B/P) ratio, 423, 461, 463 Bottom-up asset allocation, 26 Broker-dealers, 287-288 Broker quotes, 289-290, 292, 294 Budgeting, in risk management, 252 Bulleted portfolios, 437 Bush, President George W., 550 Business plan, 256 Buy-and-hold strategies, 196, 542, 579-580,587 Buy-side traders, 432 Callable bonds, 440 Capital appreciation, 436, 567 Capital Asset Pricing Model (CAPM): components of, 36-37 development of, 36 expected returns, 40 global equilibrium, 77 implementation of, 103 international, 56, 66 market portfolio, 91, 100-101, 103 optimal portfolio, 41-42 risk aversion, 38-39 risk premium, 42-43 testing, 103 time period, 37 uncorrelated assets, 152, 155 Capital depreciation, 436 Capital gains/capital gains tax, 30, 47, 534, 536-539, 541-542, 565, 569, 579-580, 585 Capital markets, 4 60 Capital market theory, 179 Carried interest, 519 Carve-outs, 414 Cash, generally: Capital Asset Pricing Model (CAPM), 37, 40 completion management, 414^15 effects on tracking errors, 390-392 equity risk factor models, 375-376 global tactical asset allocation (GTAA), 470, 472 international portfolios, 319 Cash flow, 27, 280, 435, 437 Cash flow projections, 112 Cautious investors, 10 Central banks, 460-461, 550 Charitable gifts, 566 Charitable remainder trust (CRT), 566, 568-569,576,578 Chen, Peng, 45, 47-48 Children, wealth creation strategies, 566,570,574 Clinical decision analysis, 418 Closing price, 295, 431 Collateral, 470 Collateralized mortgage obligations (CMOs), 441 Combined single region model (SRM), global equity factor model, 367-369, 371-373 Commercial real estate, 101-102 Commingled vehicles, 410-412 Commissions, 472 Commodities, 20-22, 25, 103, 153 Commodity Futures Trading Commission (CFTC), 474 Common stock, 99 Completion management, 414-415 Completion manager, 468 Completion portfolio, GTAA, 455, 457-458