In $1986,$ Brinson, Hood, and Beebower published a study on the determinants of

portfolio performance. What was the main findings from their study?

Asset allocation explains over $90$ percent of portfolio returns.

Investment advisers should focus most of their research on market timing or

security selection and less on the asset allocation decision.

Asset allocation explains over $90$ percent of the variation in portfolio returns.

Mutual funds cannot and should not be part of an investment strategy that

enables investors to effectively allocate their assets to achieve their financial

goals.