winyaz

Risk-Based Asset Allocation: Worth the Effort

Very good article. For my stock portfolio I account for the volatility of each stock when determining position size. It makes sense to do something similar for an allocation of funds, however if I were to base the position size strictly off volatility, the bond funds would get a very large position size. Could you provide an example of how one might apply this, say to a basic portfolio of US stocks, Int'l stocks, and bonds?

Don