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Which of the following statements is incorrect regarding Bucket based asset allocation? Allocation of assets within each bucket can be done either through a quantitative
Which of the following statements is incorrect regarding Bucket based asset allocation? Allocation of assets within each bucket can be done either through a quantitative methodology or a qualitative methodology which considers the inherent nature of each asset that is considered to be included in the portfolio Asset allocation based on "Three Buckets" is inferior to Mean-Variance allocation that uses historical risk, return and correlation for each asset since the MV framework is backed by a sound theoretical framework. Allocation to each bucket in a "Three Bucket" asset allocation is based on investors' investment objectives. O A "Three Bucket" based asset allocation allows for better allocation of risk than a Risk Parity portfolio, since portfolio managers can choose the level of risk allocation or types of investments to each bucket. Investors are able to change allocation of assets within, and across, each bucket based on changes in investment objectives
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