550 Tax-exempt income market securities, 565 Tax loss harvesting, 587-590 Technical factors, equity risk factor models, 341, 345 Theory: Black-Litterman global asset allocation model, 76-88 Capital Asset Pricing Model (CAPM), 36-43 equilibrium approach, 3-6 equity risk premium, 44-54 global equilibrium expected returns, 55-75 modern portfolio theory (MPT), 7-23 risk measurement, 24-35 Three-factor model, return attribution, 328 Tiering income, 56S-569 Time horizon, 9, 29, 149, 256-257. See also Investment horizon Time-series modeling, equity risk factor models, 341,356,377 Time-weighted returns, 282-283 Top-down asset allocation, 26, 98, 448 TOPK, 101, 427 Total risk, 26 Tracking errors: active management, 200, 202, 204-205, 207-209, 449 cash effects, 390-392 defined, 249-250 equity risk factor models, 380-383 expectations, 263 forecasts, 262 management, structured vs. traditional, 193 performance measurement, 273, 275 portfolio construction and, 427 risk budgeting, 174, 177, 189-190, 447-451 risk monitoring, 213-216, 222, 249 Trade-cost monitoring, 424 Trade optimizer, 431 Trade-offs: active risk budget, 199 risk/return, 115, 120, 154, 520, 553 Traditional investments: characteristics of, 198-199 equity portfolio management, 416-434 fixed income risk and return, 435-451 investment program implementation, 407-415 management selection, asset-management approach, 399-406 Traditional management: cash, 485 equity portfolio management (EPM), 417-419 global tactical asset allocation (GTAA), 479 hedge funds and, 484-486, 491 selection factors, 202-203, 205-210 structured management compared with, 193-197 Transaction costs: adverse selection risk, 424 decision price, 425 explicit costs, 424 global tactical asset allocation (GTAA), 457, 467-468, 470 implications of, 4, 77, 172, 212, 221, 411-412,414,417,424 implicit costs, 424 inventory risk, 424 market impact, 424 Transfer taxes, 534, 537, 544, 565, 567,570-572 Transition managers, 412 Treasury bills (T-bills), 344, 375, 444, 547-549, 552-553, 555, 564 Treasury Inflation-Protected Securities (TIPS), 552-553 Tremont Event Driven peer index, 508 Trend analysis, 260 Treynor, Jack, 36 Triangulation, management selection, 403-404