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Notices
T
Tobias (not verified)
20th December 2019 | 9:16am

My reading of the results is that your optimized portfolio is not very informative. It shows a corner solution. Imagine US equity return assumption to be 0.2% higher and real estate return assumption to be 0.2% lower, then the portfolio would most likely invest 25% in US equities and nothing in real estate. Bottom line: be careful to draw any conclusions from poorly designed optimizations that are highly sensitive to input facors.