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Bridge over ocean
1 March 2010 Financial Analysts Journal Volume 66, Issue 2

The Importance of Asset Allocation

  1. Roger G. Ibbotson

This article discusses the impact on performance of the long-term asset
allocation policy relative to the impact of active management. Most of the
variation in time-series returns for a typical fund comes from general market
movement. The remaining variation comes about equally from asset allocation
policy and active management.

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