Your Risk Temperature

In his ground breaking work Portfolio Selection published in 1952, Nobel Laureate Harry M. Markowitz, known as the father of Modern Portfolio Theory (MPT), stipulates that investment decisions depend on two variables: risk and return and only these two variables.

However, over the last two decades or so, MPT experts and behavioral economists have proven that volatility as the measure of risks specified in MPT is inadequate. They have found that, in reality, investors are particularly concerned about risks of capital losses, more so than the up and down movements of the markets. Furthermore, the Prospect Theory created by the 2002 Nobel Laureate in Economics Daniel Kahneman and Amos Tversky demonstrates that investors feel greater pain from a loss than satisfaction from gains of the same amount.

KYUR applies recent innovations in MPT and better understanding of risk attitudes from behavioral finance to craft your Risk Profile, which is used to calculate your risk tolerances which are then converted to Risk Temperature investment solutions.