Capital market assumptions
Also: CMA, CMAs
Forward-looking estimates of return, risk and correlation for each asset class.
Capital market assumptions are the inputs an allocation is built on: expected return, volatility and correlation per asset class. Moondog's engine uses explicit, versioned assumptions, so every scenario can be traced back to them.
Every projection a family sees rests on these assumptions, yet they are rarely examined. Small changes to expected returns or correlations can swing an allocation materially. Making the assumptions explicit and versioned, rather than buried in a model, is what lets a family question the conclusions.