Which of the following statements about implementing a Three Buckets model is incorrect? An Mean...
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Finance
Which of the following statements about implementing a Three Buckets model is incorrect? An Mean Variance Optimized, or Risk Parity/Allocated methodology can be applied to allocate assets within each bucket. The Safe bucket will consist of mainly investment grade government and corporate bonds The Three Bucket allocation allows investors to choose the level of defense and growth for their investment needs. The three Bucket model will yield the same asset allocation as Risk Parity portfolios, IF each bucket has the same allocation - that is 33.33% allocated to each bucket Investors with higher risk tolerance can have higher allocation to Risky bucket than to the Market Risk bucket
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