My experience applying the ideas of modern portfolio theory.

1. Modern Portfolio Theory and Practice -or- Get Rich Slow -or- Why the Real Mutual Fund Scandal is Legal David Roodman Summer 2007

10. Daily % change in AT&T stock vs. previous % change, ~1998-2003

22.   Geometric  From Malkiel, Random Walk Down Wall Street

26. From Robert Haugen, The New Finance: The Case against Efficient Markets, based on Fama & French 1992

28. From Robert Haugen, The New Finance: The Case against Efficient Markets, based on Fama & French 1992 Beta

29. 100 Most-Cited Researchers in Economics SOURCE: ISI Essential Science Indicators Web based product from the September 1, 2002 update covering a ten year plus six month period, January 1992 - June 30, 2002. RANK SCIENTIST PAPERS CITATIONS CITATIONS PER PAPER 1 SHLEIFER, A 50 1,717 34.34 2 FAMA , EF 20 1,242 62.10 3 LEVINE, R 22 1,205 54.77 4 KAHNEMAN, D 16 1,122 70.12 5 VISHNY, RW 23 1,043 45.35 6 MURPHY, KM 20 984 49.20 7 TVERSKY, A 13 901 69.31 8 SALAIMARTIN, X(*) 19 894 47.05 9 FRENCH , KR 14 881 62.93 10 ANDREWS, DWK 27 856 31.70

34. Allocations

36. Real returns, 8/19/99–10/24/07

43. Total return on some funds in the portfolio Note: Not all funds held all 8 years.

44. “ Having spent nearly a decade writing about investment management for the little guy, I have come to the conclusion that I no longer believe in the basic premise of my public persona—a surreal cross between Harry Markowitz and Johnny Appleseed, as a friend put it. “ A decade ago, I really did believe that the average investor could do it himself. After all, the flesh was willing, the vehicles were available, and the math wasn’t that hard. “ I was wrong. Having emailed and spoken to thousands of investors over the years, I’ve come to the sad conclusion that only a tiny minority, at most one percent, are capable of pulling it off.” -- William J. Bernstein, Efficient Frontier, Winter 2003 http://www.efficientfrontier.com/ef/103/probable.htm