Remember those optical illusions that used to tease you as a kid? Is it an old woman or a young woman? Is it a vase or two faces? Or anything by Escher?
In each of these cases, we have two contraries existing simultaneously. The one you see depends on the one you’re looking for. There’s no way to empirically prove the existence of one while denying the other. It all depends on how you frame the picture.
What works in art also works in finance. We think Modern Portfolio Theory tells us there’s a relationship between risk and return. That’s how many see it.
Recommended For You
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.