reconcile with frictionless capital markets. In this paper, we develop a theory of international capital allocation: a multi …

reconcile with frictionless capital markets. In this paper, we develop a theory of international capital allocation: a multi …

Gradient capital allocation, also known as Euler allocation, is a technique used to redistribute diversified capital … risk-adjusted profitability of segments, and installing limit systems. However, capital allocation can be misleading in all … may change with a portfolio restructuring. This paper proposes enhancing the gradient capital allocation by adding …