Analysis
Risk Parity Portfolio for a Swiss Pension Fund
Overview
What this challenge is about.
Your task is to design a risk parity portfolio for the pension fund, incorporating at least three alternative asset classes beyond equities and bonds. Provide a quantitative comparison of the risk contribution of each asset class, simulate the portfolio's performance under historical stress scenarios (e.g., 2008, 2020), and recommend a rebalancing strategy. Success means delivering a clear, defensible portfolio construction that the committee can present to the board, with a focus on risk diversification and capital preservation.
The Brief
What you'll do, and what you'll demonstrate.
Design a risk parity portfolio that allocates risk equally across asset classes, using alternative investments to improve diversification, and justify its suitability for a conservative pension fund.
Earning criteria — what you'll demonstrate
- Apply risk parity principles to multi-asset portfolios
- Evaluate alternative beta strategies for diversification
- Analyze risk contributions using modern portfolio theory
- Assess the role of commodities and hedge fund replication in institutional portfolios
- Develop practical implementation strategies for alternative investments
Program Fit
Where this fits in your program.
Sharpens the same skills your degree expects you to demonstrate.
Skills
Skills you'll demonstrate.
Each one shows up on your verified credential.
Careers
Roles this prepares you for.
Real titles. Real skill bridges. Pick the one closest to your trajectory.
Career mappings coming soon.