A Review of the Research on Asset Allocation Theory

Abstract

Abstract. Effective asset allocation is considered the key to successful investment. The research on the theory of asset allocation began in the 1930s. The traditional configuration strategies included 60/40 combination, equal weight combination and mean-variance model. In the 1990s, in order to relax the hypothesis of the strategy, the feasibility of the theory in practice was put forward. A series of asset-based asset allocation strategy based on the GEYR model was proposed. In 21st century, the global economic volatility strengthened, in order to effectively control the risk, to maximize the diversified portfolio, risk-based asset allocation strategy to become the focus of investor attention, risk parity model is one of the typical representatives. At the same time, in addition to the application of quantitative models, investors have begun to pay attention to the impact of the economic cycle, policy cycle and management capabilities, with proud performance of the University Endowment Fund and the operability of the Merrill Lynch clock model to become investors and Use the object.

LSTM for Return Prediction and Portfolio Optimization in America Stock Market

“…As an important part of asset allocation, the area of stock prediction and portfolio optimization has been developed over decades years. Began at 1930s, the key to successful investment is valid asset allocation [9]. In the past, a lot of research revolve round the investor.…”