In this chapter, an asset allocation model is derived. Firstly, an optimization including several asset classes is performed. Secondly, microfinance debt is introduced into the asset allocation framework with input parameters derived from a quantitative analysis of the past. Thirdly, the qualitative assessment of the scenario process microfinance provides forward-looking return, risk and correlation estimates for the asset allocation framework. Finally, the results are compared and microfinance investment advices for different investor types proposed.
KeywordsHedge Fund Private Equity Government Bond Asset Allocation Asset Class
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