Read the articles “Can You Still Hedge Your Bets?” and “Investors’ Pursuit of Alpha is Showing No Signs of Slowing.” Discuss the capital allocation decision and how you would invest $1 million in your own portfolio.

A

The capital allocation decisions, discussed in the article are closely related to the issues of money movement, and the general allocation of the financial reserves, aimed at overcoming the consequences of the financial crash. Thus, as it is emphasized by Birger:

“Alternative assets, as well as small-cap stocks and foreign issues all, soared while the Standard & Poor’s 500 staggered. Yet when Pinkernell and Bernstein gave their diversification advice a recent checkup, they discovered that investments prized for diversification have suddenly become highly correlated with U.S. blue chips. They’re up against when the S&P is up and down when the index falls.”

In the light of this consideration, the allocation principles strongly depend on the market correlation levels and may be linked with the strategies of the buffer stock tank.

As for the matters of portfolio investment, it should be emphasized that the real values of such operation are explained by the aspect of traditional values and principles of the investment market and the profile of the company. Originally, the return strategy, which depends on the investment object, correlates essentially, as the procedures of investment presuppose fixed income, immunization, and reallocation of the financial reserves into various funds, which are aimed to stabilize the investment market, nevertheless, these are also subjected to correlations.

Finally, it should be emphasized that the values of the traditional investment are covered by the aspects of proper investment allocation decisions, which depend on the entire financial strategy and the marketing tendencies, observed in any particular sphere.

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Academic.Tips. (2022) 'Read the articles "Can You Still Hedge Your Bets?" and "Investors’ Pursuit of Alpha is Showing No Signs of Slowing." Discuss the capital allocation decision and how you would invest $1 million in your own portfolio'. 13 January.

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Academic.Tips. (2022, January 13). Read the articles "Can You Still Hedge Your Bets?" and "Investors’ Pursuit of Alpha is Showing No Signs of Slowing." Discuss the capital allocation decision and how you would invest $1 million in your own portfolio. Retrieved from https://academic.tips/question/read-the-articles-can-you-still-hedge-your-bets-and-investors-pursuit-of-alpha-is-showing-no-signs-of-slowing-discuss-the-capital-allocation-decision-and-how-you-would-invest-1-mil/

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Academic.Tips. 2022. "Read the articles "Can You Still Hedge Your Bets?" and "Investors’ Pursuit of Alpha is Showing No Signs of Slowing." Discuss the capital allocation decision and how you would invest $1 million in your own portfolio." January 13, 2022. https://academic.tips/question/read-the-articles-can-you-still-hedge-your-bets-and-investors-pursuit-of-alpha-is-showing-no-signs-of-slowing-discuss-the-capital-allocation-decision-and-how-you-would-invest-1-mil/.

1. Academic.Tips. "Read the articles "Can You Still Hedge Your Bets?" and "Investors’ Pursuit of Alpha is Showing No Signs of Slowing." Discuss the capital allocation decision and how you would invest $1 million in your own portfolio." January 13, 2022. https://academic.tips/question/read-the-articles-can-you-still-hedge-your-bets-and-investors-pursuit-of-alpha-is-showing-no-signs-of-slowing-discuss-the-capital-allocation-decision-and-how-you-would-invest-1-mil/.


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Academic.Tips. "Read the articles "Can You Still Hedge Your Bets?" and "Investors’ Pursuit of Alpha is Showing No Signs of Slowing." Discuss the capital allocation decision and how you would invest $1 million in your own portfolio." January 13, 2022. https://academic.tips/question/read-the-articles-can-you-still-hedge-your-bets-and-investors-pursuit-of-alpha-is-showing-no-signs-of-slowing-discuss-the-capital-allocation-decision-and-how-you-would-invest-1-mil/.

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"Read the articles "Can You Still Hedge Your Bets?" and "Investors’ Pursuit of Alpha is Showing No Signs of Slowing." Discuss the capital allocation decision and how you would invest $1 million in your own portfolio." Academic.Tips, 13 Jan. 2022, academic.tips/question/read-the-articles-can-you-still-hedge-your-bets-and-investors-pursuit-of-alpha-is-showing-no-signs-of-slowing-discuss-the-capital-allocation-decision-and-how-you-would-invest-1-mil/.

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