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Why Glide Paths Evolve: 'Expected-To-Do' Glide Paths
| Content Provider | Semantic Scholar |
|---|---|
| Author | Mindlin, Dimitry |
| Copyright Year | 2015 |
| Abstract | This is the first article in a two-part series entitled “Why Glide Paths Evolve.” The series discusses one of the most fundamental questions of optimal glide path design – should optimal glide paths be evolving or stationary?This article demonstrates that the investor’s glide path should generally evolve if the investor endeavors to achieve the best outcomes and expects to regularly reevaluate his portfolio makeup. The article presents a concise review of the pros and cons of the existing justifications for evolving glide paths. The article also presents a simple example that demonstrates that the principle “any sub-glide path of an optimal glide path should be optimal on its own” generally leads to evolving glide paths. We call the glide paths that follow this principle “expected-to-do” glide paths because they are based on rational expectations of the investor’s future portfolio selections. The second article in the series will present different conditions that also lead to evolving glide paths. |
| File Format | PDF HTM / HTML |
| DOI | 10.2139/ssrn.2859937 |
| Alternate Webpage(s) | https://img1.wsimg.com/blobby/go/4d4cf479-d9ad-4bcc-86c9-0ff104d9a3d2/downloads/1br7v516p_751068.pdf |
| Alternate Webpage(s) | https://doi.org/10.2139/ssrn.2859937 |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
