455-482 paradigm, 106 in risk management, 24-25 strategic, see Strategic asset allocation wealth generation, 592 Asset classes: alternative, 105, 453-530 Black-Litterman approach, 76-79 currency hedging, impact of, 140-151 implications of, 19, 21 in market portfolio, 100-103 risk characteristics, 108-109 risk management, 25 timing, 458, 474 Asset consumption, 49 Asset demands, 49 Asset exposures, equity risk factor models: country, 351-353 currency, 353 industry, 350-351 investment style/risk, 351 in linear factor model, 354-355 local market, 351-353 standardizing, 353-354 Asset grouping, return attribution: contributions to returns, 332-333 international portfolio, 322-327 Asset-level contributions, return attribution, 320-322, 327-328 Asset location strategies, 571-579 Asset management: forecasting models, 76-78 importance of, 28 Asset pricing, 48 Asset universe, 356 Association for Investment Management and Research fAIMR), 477 Asymptotic principal component (APC), 345, 347 Auditing tools, 293 Average returns, 107 Backfill bias, 487 Bank accounts, 565 Barbelled portfolios, 192, 437 Becker, Gary, 102 Benchmark(s): performance measurement, 278 portfolio, defined, 374-375 in portfolio construction, 427 in risk budgeting, 446-447 in risk management, 25-26, 28 Bequest mode, 542, 587 Bermuda, 352 Beta, 30, 42-43, 87-88,101, 147,149, 155,174,176, 200, 221-222, 276-277, 303, 343, 352-353, 386-388,476 Beta-neutral, 476 Bid/ask spread, 289, 472 Black, Fischer, 56, 73, 76 Black-Litterman models: active risk, 184-185 global asset allocation model, see Black-Litterman global asset allocation model global tactical asset allocation, 467 Black-Litterman global asset allocation model: active risk, 184-185, 191 development of, 76-77 expected returns, 77-84, 431 German equity market, 79-80, 82-84 global minimum-variance portfolio, 87-88 Japanese equity market, 84 optimal portfolio weights, 76, 78, 81, 86-87 overview, 76-78 parameter changes, impact of, 85-87 risk constraints, 87-88 unconstrained me an-variance optimization, 81 unconstrained optimal portfolio, 77, 80-81, 83-85, 87 Black-Scholes option pricing model, 246,439