Evaluation of the Allocation Framework

Zusammenfassung

The aspect of diversification describes a process that has to be passed as well as a condition that is aspired.⁶⁶⁶ During this process, different assets are combined in a portfolio concerning their respective correlations.⁶⁶⁷ If the portfolio has passed this instance, the condition of diversification⁶⁶⁸ is reached.⁶⁶⁹ In general terms the diversification concerns the intention to generate a maximised return by the help of a pretended portion of risk or to achieve a decisive return while minimising risk.⁶⁷⁰ The more extensive the volatility is, the higher are the resulting opportunities incorporated by increased risks.⁶⁷¹