Post by Admin/YBB on Apr 9, 2024 5:35:34 GMT -6
In the final implementation of MPRS (M* Portfolio Risk Scores), M* is using its own opaque risk models and other factors (returns, volatilities) to determine portfolio risk scores with multiple methodologies. Those scores are normalized with the value 100 assigned for the upper limit of Very Aggressive portfolios on an absolute scale. A mapping table is then developed. The specific MPRS numbers for funds are displayed in the M* Risk tab, but those numbers don't have good intuitive meaning by themselves.
Conservative 0-24
Moderate 24-48
Aggressive 48-79
Very Aggressive 79-100
Extreme Risk 100-200
As an example, 60-40 VBINX has a risk score of 43 and it doesn't change whether 3, 5, or 10 years are clicked.
www.morningstar.com/funds/xnas/vbinx/risk
So, this system is no longer like the YBB Relative SD (or, Effective Equity), or the original MPRS notion of Relative Beta, that rely on benchmarks and tend to be more stable because the market conditions affect both the funds and the benchmark.
ybbpersonalfinance.proboards.com/post/648/thread
MPRS, 03/2024 (download)
PDF Host - MPRS, 03/2024 pdfhost.io/v/fTm~1TZwhz_MStar_MPRS_032024
Conservative 0-24
Moderate 24-48
Aggressive 48-79
Very Aggressive 79-100
Extreme Risk 100-200
As an example, 60-40 VBINX has a risk score of 43 and it doesn't change whether 3, 5, or 10 years are clicked.
www.morningstar.com/funds/xnas/vbinx/risk
So, this system is no longer like the YBB Relative SD (or, Effective Equity), or the original MPRS notion of Relative Beta, that rely on benchmarks and tend to be more stable because the market conditions affect both the funds and the benchmark.
ybbpersonalfinance.proboards.com/post/648/thread
MPRS, 03/2024 (download)
PDF Host - MPRS, 03/2024 pdfhost.io/v/fTm~1TZwhz_MStar_MPRS_032024