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A multi-market Asian equity fund currently is invested in 70% in Developed Asian Equities and 30% in Emerging Asian equities. Information regarding expectations of
A multi-market Asian equity fund currently is invested in 70% in Developed Asian Equities and 30% in Emerging Asian equities. Information regarding expectations of the two markets over the next 3 months are as follows: Market Exp. Ret. Volatility Correlation Developed 5% 12% Emerging 10% 22% 0.7 Create a Risk Allocated portfolio that takes advantage of the forecasted market condition, while ensuring the allocation to Developed Asian Equities is between 50 and 80%, while allocation to Emerging Asian Equities is between 20 and 50%.
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