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Risk Control Methodology
- The BIRR Approach to Controlling for Economy-Wide Surprises
Our approach to controlling for unexpected changes in long- and short-term interest rates, inflation, the real growth rate of the economy, and market sentiment
- Is the market properly valued?
On average investors are rewarded for the risks they undertake. Click on one of the choices below to see a graph comparing the cumulative return attributable to these rewards for risks with the actual historical return for the S&P 500. Cumulative returns are computed over a five-year period for a $1.00 initial investment, with dividends reinvested. The BIRR risk factors for which investors are rewarded include economy-wide surprises in interest rates, inflation, the real growth rate of the economy, and market sentiment.
- Using Macroeconomic Factors to Control Portfolio Risk (PDF format - 420 KB)
- The BIRR Equity Risk Model (PDF format - 1.3 MB)

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| Copyright © 1996-2009 BIRR Portfolio Analysis, Inc. | Site last updated March 5, 2010 |
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