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An examination of global asset allocation and home bias |
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In 1986, in "Determinants of Portfolio Performance,"¹ Gary Brinson, L. Randolph Hood, and Gilbert Beebower concluded that asset allocation is the primary driver of return variability for a broadly diversified portfolio over time. Since then, some investment professionals have disagreed with the findings.
This Vanguard research paper aims to bring clarity to the topic by examining two key questions: How does asset allocation affect your risk/return expectations? And how much home bias is reasonable?
Use this paper to:
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