The design of a web-based personal asset allocation system

The design of a web-based personal asset allocation system 

In the Section we present a brief description of a web based personal financial system and discuss some of its elements as they relate to the c-banking model presented in the previous Section. The system was designed by Con-siglio et al. (2002) and has been adopted by several Italian institutions. We also briefly discuss some key characteristics of a successful business plan for the implementation of the system. 

For each user-specified goal PFT provides three interactive modules  

Personal asset allocation This determines the strategic asset allocation decisions. Users are asked to specify their targets, their planning horizon, and the availability of funds. The users must also reveal their attitude towards risk. A scenario optimization model (see Consiglio et al., 2002 Consiglio et al., 2001) specifies an asset allocation plan that meets the target using the available endowment, and which is consistent with the user s risk profile. 

Personal risk analyzer This measures the portfolio risk and monitors the portfolio performance in achieving the target goals. 

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