Tag: personal-finance
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Asset Allocation Versus Risk Allocation in Portfolio Construction PART 2: Risk Parity
As of Dec 28 2024 In a previous article, by decomposing the risk of a 60/40 we showed that there is some imbalance between the asset class weight and its contribution to the total risk. One other portfolio allocation method that can address that imbalance is the risk parity. Using the same data spanning a…