Question
Construct a strategic asset allocation policy for the portfolio you recommended. Using information provided in the case, the additional readings provided for this assignment, and
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Construct a strategic asset allocation policy for the portfolio you recommended. Using information provided in the case, the additional readings provided for this assignment, and the chapter 9 reading, explain at least three factors that you would need to consider when developing a strategic asset allocation policy. A sample strategic asset allocation policy is provided below.
Asset Class | Policy Weight | Upper Limit | Lower Limit |
Government Bonds | 10% | 15% | 5% |
Corporate bond | 10% | 15% | 5% |
Canadian Equities | 20% | 30% | 10% |
U.S. Equities | 30% | 40% | 20% |
International Equities | 20% | 25% | 15% |
Emerging Market Equities | 10% | 15% | 5% |
TOTAL | 100% |
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