The problem with "geopolitical risk" is that it is not risk but uncertainty so it isn't really quantifiable, thus there's no "efficient allocation" that can happen because that doesn't happen in conditions of uncertainty.
@cnbc.comDow rises 400 points after Trump says U.S. in 'serious' talks to end operation in Iran: Live updates
cnb.cx
Dow rises 400 points after Trump says U.S. in 'serious' talks to end operation in Iran: Live updates
The Dow Jones Industrial Average sank into correction territory on Friday, joining the Nasdaq, which entered a correction the day before.
