• Welcome to Daffodil International University.
 

News:

Daffodil International University Forum contains information about Open Text material, which is only intended for the significant learning purposes of the university students, faculty, other members, and the knowledge seekers of the entire world and is hoped that the offerings will aide in the distribution of reliable information and data relating to the many areas of knowledge.

Main Menu

Risk Parity

Started by munna99185, November 13, 2014, 03:39:45 PM

Previous topic - Next topic
Print
Go Down Pages1
User actions

munna99185

November 13, 2014, 03:39:45 PM
Risk Parity is a portfolio allocation strategy based on targeting risk levels across the various components of an investment portfolio. The risk parity approach to asset allocation allows investors to target specific levels of risk and to divide that risk equally across the entire investment portfolio in order to achieve optimal portfolio diversification for each individual investor. Risk parity strategies are in contrast to traditional allocation methods that are based on holding a certain percentage of investment classes, such as 60% stocks and 40% bonds, within one's investment portfolio.

[Source: http://www.investopedia.com/terms/r/risk-parity.asp]

Sayed Farrukh Ahmed
Assistant Professor
Faculty of Business & Economics
Daffodil International University
Print
Go Up Pages1
User actions