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In selecting an asset allocation: An investor should first understand his/her utility function first, then optimize it. An investor should always use leverage becaus leverage
In selecting an asset allocation:
An investor should first understand his/her utility function first, then optimize it. | ||
An investor should always use leverage becaus leverage increases expected returns. | ||
An investor should always use mean-variance optimization because it has a solid mathematical background. | ||
An investor should always minimize downside risk. |
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