I recall reading this in either book 2 or 3, but I forget the term. Or maybe I read this in another place in the same time I was reading book 2 or 3. You know how it goes… when you are studying cfa, you’re not sure what is real life anymore.
If you are a pension fund and you have 4 asset classes, and you decide to allocate each at 25%. You compare each asset class with a benchmark. But you need to benchmark yourself to see if your 25% allocation to each asset class was good.
Is there a term or phrase that determines if your 25% allocation is correct?