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