RESULTS
THE BOTTOM LINE
RELATED TOPICS
REFERENCES
NOTES
21 CHAPTER 15: Constraints THE CHALLENGE WRONG AND ALONE MEAN-VARIANCE-TRACKING ERROR OPTIMIZATION THE BOTTOM LINE REFERENCE NOTE
22 CHAPTER 16: Asset Allocation Versus Factor Investing THE CHALLENGE PORTFOLIO CONSTRUCTION CASE STUDY THE BOTTOM LINE RELATED TOPICS REFERENCES NOTES
23 CHAPTER 17: Illiquidity THE CHALLENGE SHADOW ASSETS AND LIABILITIES EXPECTED RETURN AND RISK OF SHADOW ALLOCATIONS OTHER CONSIDERATIONS CASE STUDY THE BOTTOM LINE RELATED TOPICS APPENDIX REFERENCES NOTES
24 CHAPTER 18: Currency Risk THE CHALLENGE WHY HEDGE? WHY NOT HEDGE EVERYTHING? LINEAR HEDGING STRATEGIES NONLINEAR HEDGING STRATEGIES THE BOTTOM LINE RELATED TOPICS REFERENCES NOTES
25 CHAPTER 19: Estimation Error THE CHALLENGE TRADITIONAL APPROACHES TO ESTIMATION ERROR STABILITY-ADJUSTED OPTIMIZATION BUILDING A STABILITY-ADJUSTED RETURN DISTRIBUTION DETERMINING THE OPTIMAL ALLOCATION EMPIRICAL ANALYSIS THE BOTTOM LINE RELATED TOPICS REFERENCES NOTES
26 CHAPTER 20: Leverage Versus Concentration THE CHALLENGE LEVERAGE IN THEORY LEVERAGE IN PRACTICE THE BOTTOM LINE RELATED TOPICS REFERENCES NOTES
27 CHAPTER 21: Rebalancing THE CHALLENGE THE DYNAMIC PROGRAMMING SOLUTION THE MVD HEURISTIC THE BOTTOM LINE RELATED TOPICS REFERENCES NOTES
28 CHAPTER 22: Regime Shifts THE CHALLENGE PREDICTABILITY OF RETURN AND RISK REGIME-SENSITIVE ALLOCATION TACTICAL ASSET ALLOCATION THE BOTTOM LINE APPENDIX: BAUM–WELCH ALGORITHM RELATED TOPICS REFERENCES NOTES
29 CHAPTER 23: Scenario Analysis THE CHALLENGE COMPARISON TO MEAN-VARIANCE ANALYSIS THE MAHALANOBIS DISTANCE APPLIED TO SCENARIO ANALYSIS THE MAHALANOBIS DISTANCE AND PROBABILITY REVISING PROBABILITIES CASE STUDY MAPPING
