R4- Principles of Asset Allocation

Question 1

MVO concept

Answer 1

Identify that maximizes return for every level off risk.

Question 2

Constrains of MVO method (6)

Answer 2

Question 3

Aproaches to liability driven portifolio

Answer 3

Question 4

Fill the blanks:The goals based approach is ideal to ___

Answer 4

Individual investor who tipically have a number of conflicting objectives, with deferentt time horizons.

Question 5

Aproaches to % equity over portifolio for choosing the equity vs fi allocation (dumb rules like 60/40 split)

Answer 5

120 minus age
60/40 Split
Endowment model
Risk parity
1/n rule

Question 6

F-weight of allocation to an asset in context of only one risky asset and a risk free asset

Answer 6

w is the optimal weight of the asset in the portifolio

Question 7

Fill the blanks: In the absence of rebalancing, overall portifolio risk ____

Answer 7

Rises

Question 8

Global market weighted portifolio

Answer 8

Includes all investable assets, equities, and real assets