Question: Universal Portfolio

This question is related to the Question universal portfolio Cover

Can anyone explain the below printscreen in simple terms ?

It is taken from http://www.lgt.com/export/sites/inta_lgtcom/fr/institutionelle_kunden/kompetenzen/traditionelle_anlagen/lgt_and_science/aktuelle-projekte/quantitative-finance/Projekt_EfeAksueyek_en.pdf

on pages 24. Why do we have such a ratio (second formula) ?

 


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