Portfolio Asset Allocation on LEE Pension Fund Research Paper - 1

Portfolio Asset Allocation on LEE Pension Fund - Research Paper Exampleate bonds had the lowest correlation (-0.011827), implying it would be a desired asset for risk reduction, among the portfolios, by means of increased diversification. Standard deviations (SD) and means were also calculated in order to give a relative comparison between the different asset classes with regard to return and risk.Before 1970s, authentic estate never existed as a recognizable and complete investment asset class. As an alternative, the portfolios of organizational investors like pension funds entailed almost exclusively of bonds, stocks, and cash. However, this situation was changed as inflation and modern portfolio theory caused the boldness of real estate one institutional investment asset class. The current undesirable performance in equity market implies real estate is progressively registering mixed-asset portfolio. Nevertheless, determining whether the desired return in real estate is one lo ng-term phenomenon or a temporary thing is a dread that rest hugely unanswered. In simple terms, little or no even evidence exist to prove whether real estate ought to play an unswerving consort in mixed-asset portfolio across long-term and short-term investment horizons. We intend to explore and give more light with regard to the uncertainty surrounding mixed-asset portfolio. This was our primary concern as far as this paper is concerned.So as to protect the portfolios from any short-term or long-term fluctuation in the market, the pension systems bedspread assets across a wide range of asset classes. This allowed each portfolio to uphold stability through the turbulent market cycles. Every systems asset was invested in bonds, stocks, real estate, and global asset allocation strategies, with a small asset allocation to associate partnerships. The assets incorporated in the analysis were given as followsThese investment categories exhibited light correlations since when one cat egory was wavering, another was doing exceedingly well or