The Importance of Asset Allocation

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Financial Analysts Journal
March/April 2010 | Vol. 66 | No. 2 | 2 pages
Source: CFA Institute
Roger G. Ibbotson

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Abstract

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.

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Topics
Performance Measurement and Evaluation
    :
  • Performance Attribution
  • ·
  • Return Measures (Arithmetic, Geometric, Time Weighted, Dollar Weighted)
|
Portfolio Management
    :
  • Asset Allocation
Credits · About the CE Program
0.5 CE (including 0 SER) Manage CE Credits

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