Overview of Asset Allocation

Free CFA Level III: Portfolio Management lesson in Asset Allocation. 34 min read, ~5,173 words.

Asset allocation explains the vast majority of portfolio return variability over time. Asset-only (MVO) ignores liabilities; surplus optimization, hedging/return-seeking, and integrated ALM do not. Goals-based allocation maps sub-portfolios to individual goals ranked by priority. Strategic = long-term policy; tactical = short-term deviation; dynamic = rules-based adjustment. Asset class specification requires...

Read the full lesson, free →

Worked examples, audio narration, and practice. No signup to read.

What this lesson covers

Content
Example 1
Example 2
Common Mistakes
Key Takeaways
Exam Shortcuts

Learning objectives

overview

Browse all free CFA L3 Portfolio Mgmt lessons or jump into free CFA L3 Portfolio Mgmt practice questions.