Perspectives: The Importance of Asset Allocation
Posted: 16 Apr 2010
Date Written: April 16, 2010
This article discusses the impact on performance of the long-term asset allocation policy relative to the impact of active management. Most of the variation in time-series returns for a typical fund comes from general market movement. The remaining variation comes about equally from asset allocation policy and active management.
Keywords: Performance Measurement and Evaluation, Performance Attribution, Return Measures (Arithmetic, Geometric, Time Weighted, Dollar Weighted), Portfolio Management, Asset Allocation
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