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  2. Asset allocation - Wikipedia

    en.wikipedia.org/wiki/Asset_allocation

    Example investment portfolio with a diverse asset allocation. Asset allocation is the implementation of an investment strategy that attempts to balance risk versus reward by adjusting the percentage of each asset in an investment portfolio according to the investor's risk tolerance, goals and investment time frame. [1]

  3. Portfolio optimization - Wikipedia

    en.wikipedia.org/wiki/Portfolio_optimization

    Portfolio optimization is the process of selecting an optimal portfolio (asset distribution), out of a set of considered portfolios, according to some objective.The objective typically maximizes factors such as expected return, and minimizes costs like financial risk, resulting in a multi-objective optimization problem.

  4. How to Achieve Optimal Asset Allocation: A Guide to Building ...

    www.aol.com/finance/achieve-optimal-asset...

    An asset allocation is a financial road map that shows you where to put your money based on your own investment objectives, risk tolerance and time horizon.

  5. Asset Allocation Models Can Make You Rich - AOL

    www.aol.com/news/2012-11-07-asset-allocation...

    Allocating your money across different types of assets is a proven strategy to help you invest smarter. But in order to make the most of that strategy, you'll want to follow asset allocation ...

  6. Capital asset pricing model - Wikipedia

    en.wikipedia.org/wiki/Capital_asset_pricing_model

    An estimation of the CAPM and the security market line (purple) for the Dow Jones Industrial Average over 3 years for monthly data.. In finance, the capital asset pricing model (CAPM) is a model used to determine a theoretically appropriate required rate of return of an asset, to make decisions about adding assets to a well-diversified portfolio.

  7. Vanguard: Don't Give Up on the 60/40 Portfolio Just Yet. Here ...

    www.aol.com/vanguard-says-dont-60-40-200900703.html

    For years, one of the most classic asset allocation models has been the 60/40 portfolio, wherein 60% of your assets went into stocks and 40% was put into bonds. In 2022, that type of portfolio ...

  8. Markowitz model - Wikipedia

    en.wikipedia.org/wiki/Markowitz_model

    In finance, the Markowitz model ─ put forward by Harry Markowitz in 1952 ─ is a portfolio optimization model; it assists in the selection of the most efficient portfolio by analyzing various possible portfolios of the given securities. Here, by choosing securities that do not 'move' exactly together, the HM model shows investors how to ...

  9. Understanding Stock Allocation Rules - AOL

    www.aol.com/understanding-stock-allocation-rules...

    A popular asset allocation by age model invites investors to let their age guide their investments. As the theory goes, younger investors should put more of their money into stocks, while older ...

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