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World Scientific
Published by World Scientific Publishing Co. Pte. Ltd. 5 Toh Tuck Link, Singapore 596224 USA office: 27 Warren Street, Suite 401-402, Hackensack, NJ 07601 UK office: 57 Shelton Street, Covent Garden, London WC2H 9HE
Library of Congress Cataloging-in-Publication Data Alternative investments and strategies / edited by Rüdiger Kiesel, Matthias Scherer & Rudi Zagst. p. cm. ISBN-13: 978-9814280105 ISBN-10: 9814280100 1. Investments--Moral and ethical aspects. 2. Portfolio management--Moral and ethical aspects. I. Kiesel, Rüdiger, 1962– II. Scherer, Matthias. III. Zagst, Rudi, 1961– HG4515.13.A498 2010 332.6--dc22 2010013167
British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library.
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PREFACE
Asset allocation investigates the optimal division of a portfolio among different asset classes. Standard theory involves the optimal mix of risky stocks, bonds, and cash together with various subdivisions of these asset classes. Underlying this is the insight that diversification allows for achieving a balance between risk and return: by using different types of investment, losses may be limited and returns are made less volatile without losing too much potential gain. These insights are...