Blake,Lehmann and Timmerman (1999)find that the ____ is of prime importance.

A) interest rate
B) asset allocation
C) information ratio
D) market timing measures

Question

Blake,Lehmann and Timmerman (1999)find that the ____ is of prime importance.

A) interest rate
B) asset allocation
C) information ratio
D) market timing measures

Quizplus · Accepted Answer

Blake,Lehmann and Timmerman (1999)study UK superannuation funds and,using a method that decomposes returns in active versus passive management components,conclude that the large proportion of variation,around 90%,across time in funds is accounted for by the strategic asset allocation decision.This result suggests that the asset allocation is of prime importance,and that once selected,there should be relatively passive management of securities within an asset class.

Blake,Lehmann and Timmerman (1999)find That the ____ Is of Prime