Portfolio advice before modern portfolio theory : the Belle Époque for french analyst Alfred Neymarck
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2021
- handle: 10670/1.anvsv0
- hal: hal-03403339
- doi: 10.1080/00076791.2019.1676231
- SCIENCESPO: 2441/5uiggte9218fho46bb53jr7m8a
- WOS: 000693274700006
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info:eu-repo/semantics/altIdentifier/doi/10.1080/00076791.2019.1676231
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info:eu-repo/semantics/altIdentifier/hdl/2441/5uiggte9218fho46bb53jr7m8a
info:eu-repo/semantics/OpenAccess
Mots-clés
Portfolio advice Diversification before WW1 Financial markets prior WW1 G - Financial Economics/G.G1 - General Financial Markets/G.G1.G11 - Portfolio Choice • Investment Decisions N - Economic History/N.N2 - Financial Markets and Institutions/N.N2.N23 - Europe: Pre-1913 N - Economic History/N.N8 - Micro-Business History/N.N8.N83 - Europe: Pre-1913Sujets proches
Scrip Investment securities Securities law Capitalization (Finance) Blue sky laws Securities--Law and legislation Portfolio Underwriting Investing Investment management PortfolioCiter ce document
Maxime Merli et al., « Portfolio advice before modern portfolio theory : the Belle Époque for french analyst Alfred Neymarck », HAL-SHS : économie et finance, ID : 10.1080/00076791.2019.1676231
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Résumé
In this article, we propose an original analysis of advice given by financial analysts prior to WW1. Our article focuses on the writings of A. Neymarck, one of the most popular French analysts in the early 20th Century. The creation of portfolios from a new database composed of the monthly returns of all the security types listed on the official Paris Stock Exchange from 1903 to 1912 has provided results demonstrating that Neymarck correctly identified the risk in a number of sectors. The performances of these portfolios, which were built according to Neymarck’s guidelines, confirm Neymarck’s ranking in terms of both risk and return: the richer the investor, the riskier and the more profitable his portfolio was seen to be. Finally, the Modern Portfolio Theory enables us to pinpoint the few imperfections in Neymarck’s advice, which globally appears to be driven by reliable financial analysis.