Allocation – Matrix Approach (First Scenario)
{"Image DocumentName": "Allocation \u2013 Matrix Approach (First Scenario)", "Image ImageDescription": "Allocation \u2013 Matrix Approach (First Scenario) The matrix approach makes all possible bets, that is, also the bet A vs. B. The relative risk between A and B is marked in red. The triangle ABC is positioned such that its corners. touch the corresponding iso-vp lines. As B is more undervalued than A, we go long B vs. A. Based on the vp differential and the risk. geometry, this bet will be of average size. That is, the bet A vs. B has mainly implications. in terms of diversification. VP=20% VP=7% VP=0% B. C. A.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}