Portfolio advice before modern portfolio theory
The Belle Epoque of French analyst Alfred Neymarck
Bibliographic Data
| ID | 8420195 |
|---|---|
| Authors | Maxime Merli (0000-0003-3507-941X, LaRGE Research Center, EM Strasbourg Business School, University of Strasbourg, Strasbourg, France, corresponding author), Antoine Parent (0000-0001-5087-9488, OFCE, IEP de Lyon, CNRS UMR 5593 – LAET-CNRS, and CAC-IXXI, ‘Cliometrics and Complexity – Complex Systems Institute’, ENS Lyon, Lyon, France), Cécile Edlinger (FundRock Group, Luxembourg, Luxembourg) |
| Year | 2021 |
| Volume | 63 |
| Issue | 7 |
| Pages | 1197-1221 |
| Publication date | 2021-10-03 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Business History (JOURNAL) |
| Journal identifiers | ISSN: 0007-6791 • E-ISSN: 1743-7938 |
| Publisher | Informa UK Limited (PUBLISHER • GB) |
| DOI | 10.1080/00076791.2019.1676231 |
| OpenAlex | W2987509652 |
| Language | EN |
| Citations received | 2 |
| References cited | 17 |
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
Actuarial science · Advice (programming · Business · Economics · Financial economics · Modern portfolio theory · Portfolio · Ranking (information retrieval · Stock (firearms · Stock exchange · Artificial Intelligence · Computer Science · Economic Theory and Institutions · Finance · Financial Markets and Investment Strategies · Historical Economic and Social Studies · History
Manias, Panics, and Crashes
Optimal Versus Naive Diversification
Equilibrium in a Capital Asset Market
A Simplified Model for Portfolio Analysis
The Valuation of Risk Assets and the Selection of Risky Investments in Stock Portfolios and Capital Budgets
An Optimal World Portfolio on the Eve of World War I
Lessons from the past
The Influences Affecting French Assets Abroad Prior to 1914
Individual investors and local bias in the UK, 1870-1935
| Unique citing works | 2 |
|---|---|
| Citations per year | 2 |
| Citation span | 2025 - 2025 (1) |
| Citation velocity | recent |
| Highly cited | No |
| Citation types | Neutral: 2 |