Hi Ashok,

I have never built an asset allocation model before and don't look at risk in this way so I am unable to help you out here. My work on risk has focused on:

* Defining risk - in every industry, except finance, risk is defined as 'the chance of loss'

* Altering standard deviation and beta so that the numbers only reflect underperformance

* Development of new Sharpe and Treynor ratios that incorporate actual risk measures

* An examination of different ways of measuring alpha

* Development of risk categories

* Development of qualitative measures of risk

Stay tuned to The Enterprising Investor and you may hear more about these subjects.

Be well!

Jason