---
title: Impact of Risk Mismatch on Personal Portfolio Performance
url: https://www.ml-quant.com/papers/ssrn/5078142/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 5078142
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5078142
featured: 2025-01-01
citations: unknown
topic: Portfolio & Allocation
---


# Impact of Risk Mismatch on Personal Portfolio Performance

The research warns that using a target volatility level for portfolio choice can lead to poor decisions when market conditions change or when faced with a high-performing active portfolio.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5078142
- Identifier: SSRN 5078142
- Released: 2024-12-31
- First featured: Quant Letter No. 80 (2025-01-01): https://www.ml-quant.com/issues/2025-01-01/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Portfolio & Allocation

## Related

- [Synthetic data for portfolios: a throw of the dice will never abolish chance](https://www.ml-quant.com/papers/arxiv/2501.03993/): The paper highlights the shortcomings of generative models in finance, suggesting a method for generating multivariate returns that meets standard evaluations and aligns with observed asset returns.
- [Multi-hypothesis prediction for portfolio optimization: A structured ensemble learning approach to risk diversification](https://www.ml-quant.com/papers/arxiv/2501.03919/): The paper introduces a framework for portfolio allocation that uses multiple hypotheses prediction through structured ensemble models, allowing for control of portfolio diversification before decision-making.
- [On consistency of optimal portfolio choice for state-dependent exponential utilities](https://www.ml-quant.com/papers/arxiv/2501.01748/): The study shows that in a simple, arbitrage-free market, a unique prediction of random risk aversion exists that ensures consistency of optimal strategies over any time period for a certain type of state-dependent exponential utilities.
- [Dynamic Resource Allocation with Karma: An Experimental Study](https://www.ml-quant.com/papers/arxiv/2404.02687/): Research shows that a karma-based credit system has significant benefits, especially in high-urgency situations, offering insights for future practical applications.
- [Cost-aware Portfolios in a Large Universe of Assets](https://www.ml-quant.com/papers/arxiv/2412.11575/): Research suggests portfolio models that include transaction costs, highlighting the importance of considering these costs when rebalancing a portfolio.
- [Does Social Pension Insurance Increase the Efficiency of Household Financial Portfolios?](https://www.ml-quant.com/papers/ssrn/5046037/): Research shows that social pension insurance in China enhances the efficiency of household financial portfolios due to changes in risk attitude and precautionary savings.