An asset class’s own volatility involves a trade-off between transaction costs and risk control, and the width of the optimal tolerance band increases with transaction costs for volatility-based rebalancing.

Authors

• Person: Not available Organization: CFA Institute
  Principles of Asset Allocation | CFA Institute

Sources

• Principles of Asset Allocation | CFA Institute www.cfainstitute.org CFA Institute via serper

Referenced by nodes (1)

• asset classes concept