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Suppose you are following Carver's top-down approach, and your asset allocation strategy is to allocate 50% of portfolio risk to equity and 50% to bond.
Suppose you are following Carver's top-down approach, and your asset allocation strategy is to allocate 50% of portfolio risk to equity and 50% to bond. The volatility of equity is 15%, and that of bonds is 5%. What is the cash weight of equity and bonds in your portfolio
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