You enter portfolio mixes for the stochastic forecast by selecting the Asset Mixes topic in the Economic Experience field.

You can select mixes from the Efficient Frontier by clicking the Efficient Frontier... button and/or you can enter the asset mix percentages directly by providing a Description and specifying a fraction (between -9 and 9 inclusive, to allow for the possibility of leverage) for each asset class in the selected Capital Market Simulation. All the asset classes specified in the capital market simulation are candidates for an allocation percentage and are automatically listed as columns in the Asset mixes spreadsheet field. The final column in the spreadsheet is a Total column to facilitate entering an asset allocation that totals 1 (i.e., 100%). Mix #s are automatically provided. The asset mixes are numbered consecutively. Mix numbers are mainly used with the Dynamic asset allocation features described below. Press the Sort by expected return button to rearrange the mixes so that they are in ascending expected return order. Reordering gives some meaning to the mix number in that lower mix numbers tend to be more conservative than higher mix numbers.

You may enter an unlimited number of alternative asset mixes in the spreadsheet. One way to add additional asset mix rows to the spreadsheet is to right-click on the spreadsheet and select “Insert Row Below Alt+Ins” from the menu.

During a stochastic forecast, asset mix returns can be calculated based on either continuous or annual rebalancing. If you select Calculate asset mix return using: Annual rebalancing, returns will be calculated using an arithmetic average, essentially the sum of the weighted expected return for each asset class. For example, if 30% of the portfolio is in an asset class with an 8% return and the other 70% has a 5% return, the annual rebalancing arithmetic average total return is calculated as is (30% * 8%)+(70% * 5%) = 5.9%. For Continuous rebalancing, returns will be calculated using a geometric average. In our same example, the continuous rebalancing geometric average is [(1.08^0.3)(1.05^0.7)-1]=5.89%. The arithmetic average return will always be greater than the geometric average return. If returns are calculated on a continuous rebalancing basis, it can be shown that the allocation amongst asset classes will be the same at every point in time during the year. This is not the case for the arithmetic average basis where classes with better returns will become a greater portion of the asset mix over the course of the year.  Only geometric returns (Continuous rebalancing) will produce long term compound nominal returns that are comparable to the expected return that one would hand calculate for the asset mix: a weighted average of the expected return for each asset class where the weight is the allocation to that class.

For leveraged asset mixes (where some asset allocations are less than zero), asset and income returns are forced to be greater than negative one and turnover is forced to be between zero and one. ​

Check the Dynamic asset allocation based on: box to choose an asset mix each year in accordance with a decision rule. Three dynamic allocation structures are available. Asset allocation may vary by stochastic trial if the decision rule is a function of economic factors such as the plan's funded ratio and/or interest rates.  The third option is to vary asset allocation by year. The decision rule is then defined by entering mix numbers into a spreadsheet.

• For the Funded ratio option, asset mixes are assigned to funded ratio intervals. The Funded ratio definition is specified under the Params... button.  (A default setting is provided.) Select the Liability for the funded ratio's denominator {available liabilities vary by computation mode and are listed in the End of Year Additional Contribution help section). Then, for the funded ratio's numerator, define the Asset Value as either Market value or Actuarial Value for funding liabilities (Market-Related Value for accounting liabilities).
  
  For example, you may want mixes #1, #2, or #3 to be chosen if the funded ratio is (A) less than .75, (B) between .75 and 1.1 or (C) greater than 1.1 respectively. For this example, enter .75 and 1.1 as the Funded ratio breakpoints. Shorthand notations are available for entering breakpoints. Entering "From .5 to 1.5 step .1" will define eleven breakpoints. Entering "5 intervals from .75 to 1.25 will generate six breakpoints. Note that the number of intervals is always one less than the number of breakpoints. Click the OK button in order to leave the parameters screen and return to the Asset Mixes screen. You now have the opportunity to enter Asset Mix #s for each funded ratio interval in the Mix Map spreadsheet.

• For the Funded ratio and interest rates option, asset mixes are assigned to intervals that vary by both funded ratio and interest rate levels.  Click the Params... button to define the applicable interest rate and funded ratio parameters. The top portion of the parameters screen is identical to that for the Funded Ratio option. Additionally, the Interest Rate Definition is specified here by selecting for the Rate either 30-year treasury or corporate bonds. (In order to determine the current rate, the Year 0 benchmark yield for the selected rate must be entered in the Benchmark Yield section of Stochastic Assumptions.)
  
  Interest rate breakpoints: may be entered directly (e.g. .03 .07 .11) or by shorthand notations such as "From .02 to .12 step .01" or "5 intervals from .03 to .1" Click the OK button in order to leave the parameters screen and return to the Asset Mixes screen. You now have the opportunity to enter Asset Mix #s. In the Mix Map: (x = funded ratio, y = interest rate) spreadsheet, where an array is offered with each row representing a funded ratio interval and each column representing an interest rate interval.

• For the Calendar year option, Asset Mix #s are entered into the Mix Map spreadsheet. Rows may by added or deleted by placing the cursor in one of the columns and by pressing either the Ctrl-Ins or Ctrl-Del key.
  Complete a row for each calendar year. For example, if the valuation date is 7/1/2015 and the Asset Mix number is 8 through 2020 (i.e. until 7/1/2021) and Asset Mix #3 thereafter, enter:
  
  From To Mix #
  --  2020         8
  2021 --  3
  
  ProVal fills in the To column automatically and the Asset Mix # will be used for the last year entered and all years thereafter. Note that the From box in the first row cannot be modified. Our example involved only two asset mixes. If you have several asset mixes in your assumptions, you may need to press the ENTER key to create a new row.

The Allow re-risking checkbox and the ability to delay the dynamic asset allocation are available for Dynamic asset allocation based on: either Funded ratio or Funded ratio and interest rates.  

If Allow Re-risking is not checked, the historically highest funded ratio for each stochastic trial will be used for table lookup purposes. If the checkbox is checked, the current funded ratio will be used. 

Dynamic asset allocation may be delayed by checking the During a deferral period of x year(s), use asset mix # y checkbox.  After checking the box, enter the deferral period and the Mix # to be used during the deferral period.