Strategic asset allocation is a good thing but it confuses me when it is linked with portfolio return variation. Whats does portfolio variation refer to in relation to strategic asset allocation?
Portfolio return variation is the standard deviation and the level of risk embedded in the chosen asset allocation. The higher the expected return, the higher the portfolio variation is likely to be. You need to match the investor's risk appetite with the portfolio return variation.
发表于 2011-7-13 16:52
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