Financial Questions Everyone Has: The Science Behind Better Returns

Most investors understand the importance of diversification, but few understand the science behind it. 

In this episode, Paul explains the academic research behind asset allocation and why diversification is about much more than simply owning a lot of investments. Drawing on Nobel Prize-winning research, he breaks down how portfolio construction can help investors pursue higher expected returns while managing risk.

Topics covered:

• The Efficient Frontier and Harry Markowitz’s research
• Why correlation matters more than most investors realize
• Small vs. large companies
• Value vs. growth investing
• U.S. and international diversification
• The science behind portfolio design

Many investors focus on picking investments. The research suggests that how you combine investments may matter even more.