A recent study has concluded that investments that have higher volatility generate lower returns for investors. For many years, it has been a basic precept of modern portfolio theory that the price of opting for lower risk is lower reward. That is bunk, according to Robert Haugen, a former professor of finance at the University of Wisconsin and current president of a firm that produces quantitative investment research for subscribers. “We found that in every one of the world’s markets, higher volatility equals lower returns,” Mr. Haugen was quoted as saying, adding: “Does this fly in the face of modern portfolio theory? You’re damn right it does.” (See “Less risk offers more reward, study finds,” InvestmentNews).