Home>Video>Does Higher Risk Really Mean Higher Return?  Does
Higher Risk Really Mean Higher Return?  Sun, 17 Mar 2013
Video Transcript  Christine Benz: Hi, I'm Christine Benz for
Morningstar.com. I'm here at the Morningstar Ibbotson
Conference, and I had the opportunity to sit down with [Zebra
Capital chairman] Roger Ibbotson, who discussed some research he
presented at the conference about the potential for low-
volatility stocks to outperform.         Benz: Low volatility
and low beta you also mentioned are correlated with higher long-
term returns?  Ibbotson: Yes. In every category we looked at--
and we actually looked at six different categories here--and in
every one of the categories we find this relationship that
within an asset class, we get this reverse relationship. We find
that in fact that it's the low-risk portfolios that actually do
the best. So, actually I think we're not the first to cover
every part of this, but to see it all put together, it actually
has pretty startling results here that yo