Peter, 463 Hot spots: equity risk factor models, 379-386 in risk management, 34-35 Human capital, 102 Hurdle rates: defined, 181,484 hedge fund evaluations, 488, 494-500 portfolio risk, 18-21, 23 Ibbotson, Roger, 45, 47-48 Ibbotson Associates, 547 Illiquidity, 267, 503-504, 513, 526 Implementation shortfall, 425 Implied forward interest rates, 444 Implied hurdle rates, hedge funds, 494-499 Implied returns: currency hedging, 147-149 hedge funds, 493 risk budget development, 179-184 uncorrelated assets, 162-164 Implied views, in portfolio risk, 19, 22-23, 166 Implied volatilities, 246-247 Incentive fees, 289 Income, taxable, 565. See also Ordinary income Income tax, 52, 534, 536, 543, 568 Independent valuation: accounting agents, 289-290 importance of, 285-286 oversight group, responsibilities of, 286,291-293 oversight philosophy, 285-291 price verification, 290 separate oversight, 290 Individual investors, active risk management, 196 Individual retirement accounts fIRAs), 52,538 Industrial diversification, 366 Industry asset exposures, 350-351, 353-354 Industry classifications: asset exposures, 354, 356 global equity risk factor models, 366 Industry contributions: equity risk factor models, 386 return attribution, 320-322, 325-326, 328 Industry effect, global equity risk factor models, 365-367, 370 Industry factors, equity risk factor models, 345 Inflation, 11, 30, 45, 344, 436-437, 540-541, 545, 547, 549-553, 564 Inflation risk, 57 Information ratio: active risk management, 195, 199, 206-208 global equity markets forecasts, 461 global tactical asset allocation (GTAA) portfolio, 479 performance measurement, 273, 275 risk budget development, 181, 185, 187,189 Initial public offering (IPO), 519, 540 Institutional funds: international diversification, currency hedging, 136-151 market portfolio, 91-103 strategic asset allocation, 104-135 uncorrelated return sources, 152-168 Institutional investors, active risk management, 196, 198 Institutional portfolios, 25 Insurance companies, 550 Insurance coverage, 254 Interaction effect, return attribution, 307-308 Interest rate risk, 436, 442, 552 Interest rates, 30, 49-50, 292, 549 Intermediate-term price momentum anomaly, 421 Internal control, 260, 289 Internal rate of return (IRR), 520-521 Internal rate of return (IRRATE), 281-282