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Quick & Easy Investing: The Alternative Beta Approach Revisited

Posted: 1 Dec 2012 Last revised: 7 Feb 2013

Krishna Nehra

Laurent Favre Sr.


Date Written: November 30, 2012


An increasing number of investors are migrating away from active products towards passive ones such as exchange traded funds (ETFs) and other index-tracking funds, due to their ability to provide beta returns similar to many traditional active managers, but at lower cost. This growing realization that the source of most active managers’ returns is risk premium rather than manager alpha motivates one to create a portfolio of cross asset class index funds and analyse if these index funds are able to capture the risk premia available in the markets in order to generate famous ‘alternative betas’.

Keywords: Alternative beta

Suggested Citation

Nehra, Krishna and Favre, Laurent, Quick & Easy Investing: The Alternative Beta Approach Revisited (November 30, 2012). Available at SSRN:

Krishna Nehra (Contact Author) ( email )

Alternative Software Development
Witikonerstrasse 54
8032 Zurich
United States


Laurent Favre Sr.

AlternativeSoft ( email )

United Kingdom

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