Risky assets

Which portfolio offers the highest compensation for risk? Which fund has the most consistent performance over time?

Part 1 (Excel): Assume you want to invest in a market with two risky assets and the risk–free rate. The numbers are in the below table: Risky Risky Risk-freeAsset 1 Asset 2 Asset( ) 12.50% 7.50% 1.25%25.50% 15.50%120.65It is possible to choose from eight different portfolios of risky assets, with weights:Weight Weight(Risky Asset 1) (Risky […]

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