As such, the portfolio loads automatically less on the more risky asset and, by diversifying across asset classes, portfolio drawdowns are reduced.K. BoudtB. PeetersBoudt, K. and Peters, B. "Finvex White Paper on Asset Allocation with Risk Factors." Finvex Group, 2013....
returns and inflation; (ii) measuring the exposure to long-term risk at various investment horizons; (iii) valuation of financial instruments depending on persistent factors; (iv) strategic asset allocation with persistent risk factors.P... PC Schotman,J Budek 被引量: 0发表: 2004年 SLA-driven...
“Investors with a high risk tolerance can typically withstand a higher allocation to equities while investors with a low risk tolerance should focus on an allocation blend that has fewer high volatility assets,” says Willis. “Your time horizon may also play into this as well. Investors with ...
,Factor-basedassetallocation ,Modelingusingassetclassesastheunitofanalysistendstoobscuretheportfolio’ssensitivitytooverlappingriskfactors; ,TheprocessofFactor-basedassetallocation ,Specifyriskfactorsandthedesiredexposuretoeachfactor; ,Describeassetclasseswithrespecttotheirsensitivitiestoeachofthefactors;,isolateexposure...
Taking a broader view, asset allocation can be defined as the process of investing assets in a manner reflecting one’s unique ability, willingness and need to take risk. The ability to take risk An investor’s ability to take risk is determined by four factors: (1) investment horizon; (...
Asset Allocation Through Life-Cycle Funds Some asset-allocationmutual fundsare known as life-cycle or target-date funds. They set out to provide investors with portfolios that address their age, risk appetite, and investment goals with the correlated parts of different asset classes. Critics of thi...
CFA3级背诵内容4-Asset allocation 1 / 11
Risk sensitive asset allocation This paper develops a continuous time modeling approach for making optimal asset allocation decisions. Macroeconomic and financial factors are explicitly m... PM Sherris - 《Journal of Economic Dynamics & Control》 被引量: 119发表: 2000年 Optimal Estimation of the Ris...
Factors Affecting Asset Allocation Decision When making investment decisions, an investors’ portfolio distribution is influenced by factors such as personal goals, level of risk tolerance, andinvestment horizon. 1. Goal factors Goal factors are individual aspirations to achieve a given level of return ...
1. Risk vs. Return The risk-return tradeoff is at the core of what asset allocation is all about. It's easy for everyone to say that they want the highest possible return, but simply choosing the assets with the highest potential—stocks and derivatives—isn't the answer. ...