Get Indexology® Blog updates via email.


Tag Archives: capital allocation

Oct 9, 2014

The Disparity Of Risk Parity

The simple concept of risk parity is that within a portfolio, each investment contributes equally to the overall portfolio risk.  For example, a portfolio with a capital allocation of 50% equities and 50% t-bills, has a risk profile where over 99% of risk comes from the equities.  In a risk parity portfolio, if 50% risk…

READ


Get Indexology® Blog updates via email.

Indexology® Blog
Contributors

SEE ALL