How is the backtest computed?
The backtest is computed based on historical market index data. Each asset class in AllocationMaster has an associated index proxy. These proxy choices can be seen on the Parameters screen in the AllocationMaster module. The historical returns from these proxies are combined in the same percentages as the present and proposed mixes to create the historical backtest results. Backtests are often most useful in illustrating the relative historical volatilities of the two mixes.
