Develop strategic asset allocation for an investor: 1. Investor Profile: - Investment objectives - Time horizon - Risk tolerance (scale 1-10) - Liquidity requirements - Tax status - Special constraints 2. Capital Market Assumptions: - Expected returns by asset class (10Y horizon) - Volatility assumptions - Correlation matrix - Basis for assumptions 3. Asset Class Menu: - Equities (domestic, international, EM) - Fixed Income (government, credit, TIPS) - Alternatives (real estate, commodities, hedge funds, PE) - Cash 4. Optimization Approach: - Mean-variance optimization - Risk parity consideration - Black-Litterman adjustments - Constraints applied 5. Recommended Allocation: - Target weights by asset class - Allowable ranges - Rebalancing triggers 6. Expected Portfolio Metrics: - Expected return - Expected volatility - Sharpe ratio - Max drawdown (historical simulation) - VaR/CVaR 7. Implementation: - Vehicle selection (ETFs, mutual funds, separate accounts) - Cost analysis - Tax efficiency considerations Output: Strategic allocation with policy ranges and expected outcomes.