EODHD Academy

Asset Allocation

How the mix gets decided — what each asset class is for, why the mix explains most of a portfolio's variability, horizon versus capacity versus tolerance, the famous reference mixes and the arguments about them, rebalancing, and the frictions of going global.

4 units · 16 lessons · 68 min read · plus hands-on practice, at your pace

Start here

What makes something an asset class?

The Asset Classes · 5 min read · practitioner

Start the first lesson

Unit 1 The Asset Classes

  1. What makes something an asset class? 5 min
  2. What job does equity actually do in a portfolio? 4 min
  3. What do bonds and cash do for a portfolio? 5 min
  4. Where do real assets fit in? 4 min
Practice Check · Unit 1 A short check · cannot be failed Start

Unit 2 What Drives the Mix

  1. Why does the mix explain most of what a portfolio does? 4 min
  2. How does time horizon change the calculation? 4 min
  3. Why are risk capacity and risk tolerance different things? 4 min
  4. What is 60/40, and why is it argued about? 5 min
Practice Check · Unit 2 A short check · cannot be failed Start

Unit 3 Rebalancing

  1. What is portfolio drift, and why does it happen? 4 min
  2. What does rebalancing actually do for you? 4 min
  3. Calendar or threshold — when do professionals rebalance? 4 min
  4. What does rebalancing actually cost? 4 min
Practice Check · Unit 3 A short check · cannot be failed Start

Unit 4 Global and Practical Frictions

  1. Why do investors hold so much of their own country? 4 min
  2. What does currency do to a foreign holding? 4 min
  3. How does a target mix become a real portfolio? 4 min
  4. Asset allocation — course checkpoint 5 min
Practice Check · Unit 4 A short check · cannot be failed Start

Last Course exam

One exam, the whole course Unlocks when you have read all 16 lessons

Passing it earns the course certificate. It also counts toward the Investor track (course 6 of 6): pass every course exam in a track to earn its track certificate.