Topic 3: Asset Allocation and Institutional Investors
So I currently have the investment strat of 60% Equity (Mainly trackers S&P, some EM trackers etc)/23% bonds (USD treasury ETF) and 17% Cash (In the event for market turmoil - which I expect - I am able to purchase more cheap equity).
Any agreements? 5-year horizon with Moderate risk profile
How do you interpret the formula of Risk Parity. It has a “inverted 6” in the numerator and denominator. What do they mean?
Thanks for the help.
So… How difficult is the path for a Chartered Accountant to move into an Investment bank?
Has anyone managed to do this?
Has anyone heard of anything about HLI Investment Bank? Would you recommend a IB FO role there?
I’m practicing Schweser exams for CAIA Level 2 and correcting the Exam n° 1 Section 1 there is a question under the Topic Asset Allocation that has the following answer:
“Substantial current account surplus will result in currency reserve deficits in the financial (capital) account”.
In uppermark it says
“sponsors with large plan liabilities relative to the size of their assets have high risk tolerance.”
Shouldn’t such sponsors have a low risk tolerance because liabilities is bigger than the size of asset?
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