Referring to the retirement example in Example 12.7, rerun the model for a planning horizon of 10
Question:
Referring to the retirement example in Example 12.7, rerun the model for a planning horizon of 10 years;
15 years; 25 years. For each, try to find the set of investment weights that maximize the VAR (the 5th percentile) of final cash in today’s dollars. Does it appear that a portfolio heavy in stocks is better for long horizons but not for shorter horizons?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Practical Management Science, Revised
ISBN: 9781118373439
3rd Edition
Authors: Wayne L Winston, S. Christian Albright
Question Posted: