Asset Allocation Revisited

O'Rielly, William E.; Chandler, Jr., James L.
January 2000
Journal of Financial Planning;Jan2000, Vol. 13 Issue 1, p94
Academic Journal
Based on the ground-breaking 1986 study by Brinson, Hood and Beebower, it has been a commonly held belief for over a decade that asset allocation explains more than 90 percent of portfolio performance. In 1997, however, William Jahnke challenged many of the BHB tenets. Arguments on both sides of the fence continue over the importance of asset allocation. To add to the discussion, the authors present this study in which they have used a large set of mutual fund data and a random process of mixing mutual funds to test whether asset allocation is still as important today as BHB found it to be more than ten years ago.


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