Page 22 - FINAL CFA I SLIDES JUNE 2019 DAY 12
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LOS 43.f: Explain the specification of asset Session Unit 12:
classes in relation to asset allocation, p.176
41. Portfolio Risk and Return: Part II
A strategic asset allocation specifies the % allocations to the included asset classes:
• Select assets with high correlation of returns within an asset –assets will be similar in their investment performance.
• Select assets with low correlation of returns between asset classes to secure risk reduction (portfolio diversification).
tanties
