Patent ID: 7702556
Filing Date: 2010-04-20
Classification: G06Q

Abstract:
1. A method, using a computer with data storage device thereon, to construct a computer database for a population of asset allocation alternatives for the purpose of generating comparative statistics of investment performance for a whole-population of available asset allocation alternatives over a plurality of analysis periods, comprising the steps of: providing investment performance data for a plurality of securities, made from publicly offered securities, in a computer database on the computer; grouping the securities, using the computer, on the basis of this performance data into one of a plurality of market sectors inclusive of all markets available to an investor; the securities within each market sector having uniquely similar levels and patterns of investment risk; determining, using the computer a series of periodic investment returns of each of the securities; acquiring and storing within the computer a series of the average of periodic investment returns for the population of securities within each of the plurality of market sectors for a plurality of analysis periods; determining, using the computer, a minimum allocation percentage increment for each of the market sectors; determining, using the computer, allocation alternatives from the application of multiples of this minimum allocation percentage increment for each of the market sectors; creating, using the computer, a population of the all possible allocation alternatives that can be determined from the application of all multiples of this minimum allocation percentage increment for all determined market sectors; wherein the population is comprised of at least 500 allocation strategies when calculated as the product of the number of market sector populations times the number of minimum allocation percentage increments times the number of analysis periods; calculating, using the computer, a series of weighted-average periodic returns for each of the allocation alternatives within that population; determining a plurality of allocation alternatives which reside along an efficiency-line population of allocation alternatives; and calculating, using the computer, analysis-period measures of investment performance for the population of all possible allocation alternatives and the series of weighted-average periodic returns; generating comparative statistics of investment performance for whole populations of asset allocation alternatives across multiple time periods to determine which asset allocation alternative has desirable characteristics of investment return and risk; and selecting the asset allocation alternative with a desirable characteristic of investment return and risk for investment by an investor.