Hi Tom,

What is the context of your question, within the curriculum for the CFA program itself, or within our tens of thousands of pieces of content in the archive dating back to the 1940s?

If you are talking about within the CFA program I am uncertain because my role at CFA Institute is not to work on the curriculum. So you would need to address your question to a member of that team. If, on the other hand, you are referring to the vast content archive, there are multiple examples of us covering this issue. For example, Andrew Lo's Adaptive Market Hypothesis and our coverage of the issue comes to mind. Another is the work of Gregg Davies, that we have also featured in which he recasts a theory within a behavioral finance framework.

Also, Tom, you seem to be reliant on theory in order to think you need to be a successful investor. Valuation is also a means of attaining expected returns on a portfolio. Value each security with an embedded assumption about future growth rates, and weight accordingly. Also, do you believe that an evaluation of risk should be boiled down to one number? If so, then I think that figure obscures risk as much as it reveals. We will be covering in a future edition of this series some alternative ways of thinking about risk.

In concluding this comment, I believe the most important thing about MPT is the idea that different risks should be priced differently. The idea is more important that the specific implementation.

Yours, in service,

Jason