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The Rationality of Asset Allocation Recommendations

Published online by Cambridge University Press:  06 April 2009

Edwin J. Elton  and
Martin J. Gruber
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Abstract

The popular finance literature describes the asset allocation decision as one of the most important factors in determining investment performance. This article reviews the implications of modern portfolio theory for the asset allocation decision and then examinesthe recommendations of some leading financial experts to see if they are consistent with theory.

Type
Research Article
Information
Journal of Financial and Quantitative Analysis , Volume 35 , Issue 1 , March 2000 , pp. 27 - 41
Copyright
Copyright © School of Business Administration, University of Washington 2000

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Footnotes

*

Both authors, New York University, Stern School of Business, Department of Finance, 44 W 4th St, New York, NY 10012. The authors acknowledge helpful comments from Mark Kritzman (the referee).

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