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Inefficient portfolio

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Inefficient portfolio
Group of assets dominated by at least one other portfolio under the mean variance rule. For example, if A has both lower return and higher volatility than B, we say A is dominated by B.


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But due to the scarcity of long-dated gilts, there is often a mismatch between a fund's cash flows and the liabilities, which in turn results in inefficient portfolio risk budgeting.
 
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