Question
Create different portfolios with weights (weightS&P, weightBond) where weightBond = 1 - weightS&P. Let weightS&P equal 0%, 10%, 20%,,100%. Calculate the average return and the
Create different portfolios with weights (weightS&P, weightBond) where weightBond = 1 - weightS&P. Let weightS&P equal 0%, 10%, 20%,,100%. Calculate the average return and the standard deviation for each of the eleven portfolios. Which of the following portfolio has the lowest risk (as measured by the standard deviation)?
| The portfolio with 20% weight in the S&P500. | ||
| The portfolio with 40% weight in the S&P500. | ||
| The portfolio with 60% weight in the S&P500. | ||
| The portfolio with 80% weight in the S&P500. |
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The New Market Wizards Conversations With Americas Top Traders
Authors: Jack D. Schwager
1st Edition
0887306675, 978-0887306679
