one allocation quiz

tactical asset allocation is A active management and momentum B active management and contrarian C passive management and contrarian

B

B

ditto, B…

ya mamma

another question the relatively constant elements in the asset allocation process are:

someone care to explain why B – i get the active management part, but why contrarian specifically?

question 3 two advantages of incorporating equilibrium returns in Black Litterman

goodman2011 Wrote: ------------------------------------------------------- > another question > > the relatively constant elements in the asset > allocation process are: Risk Tolerance Procedure, Capital Markets Expectation Procedure and Optimizer

Question 1 answer B TAA is based on the assumption that market is mean reverting and is active management at the asset class level.

Paraguay Wrote: ------------------------------------------------------- > goodman2011 Wrote: > -------------------------------------------------- > ----- > > another question > > > > the relatively constant elements in the asset > > allocation process are: > > Risk Tolerance Procedure, Capital Markets > Expectation Procedure and Optimizer Prediction Procedure, Risk Tolerance Function and Optimizer. Thanks had to go back and get the exact terms.

question 3 two advantages of incorporating equilibrium returns in Black Litterman makes for a more stable and mean efficient portfolio

question 2 answer Prediction Procedure, Risk Tolerance Function and Optimizer question 3 dampen extreme views investor hold that could otherwise dominate the optimization ensure greater consistency across estimates

man, you guys are killing it