asset allocation strategies

a number of theories about the hest method of allocating assets have been developed over the years, managers are concernd about allocating scarce resources, mainly capital, in most productive way. managers want to ensure that the return from the invested resources exceeds the cost of resources finanical theories and finanicial strategies try to facilitate creating optimum value for investors in the companty, hut have some conflicts with each other. finanical theories suggest that there is no need for stragtegic models becaucse efficient markets allocate resources properly. as a result, investors do not benefit from the actions of managers. on the other hand, managers can point to the success of some cornpaines that have used strategic allocation models that resulted higher value for securities. in this paper, strategic asset allocation models was reviwed, and then some conflicts between financial theory and financial strategy was discussed.