Global Definitions Database

Access, learn and discover all terms related to the non-listed real estate sector.

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Risk Parity

A portfolio allocation strategy using risk to determine allocations across various components of an investment portfolio; follows the modern portfolio theory (MPT) approach to investing; typically requires quantitative methodology that makes allocations more advanced than simplified allocation strategies.

Source: NCREIF | Date: 09 September 2025 | ID: D1436 | Version: 1