Adaptive Asset Allocation Policies

Posted: 25 May 2010

See all articles by William F. Sharpe

William F. Sharpe

Stanford University - Graduate School of Business

Date Written: May 25, 2010


This article proposes an asset allocation policy that adapts to market movements by taking into account changes in the outstanding market values of major asset classes. Such a policy considers important information, reduces or avoids contrarian behavior, and can be followed by a majority of investors.

Keywords: Portfolio Management, Asset Allocation, Portfolio Construction and Revision, Risk Management, Portfolio Risk Management

Suggested Citation

Sharpe, William F., Adaptive Asset Allocation Policies (May 25, 2010). Financial Analysts Journal, Vol. 66, No. 3, 2010, Available at SSRN:

William F. Sharpe (Contact Author)

Stanford University - Graduate School of Business ( email )

655 Knight Way
Stanford, CA 94305-5015
United States
650-725-4876 (Phone)
650-725-7979 (Fax)


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