Do you agree or disagree with the following statements?

i$)$ The $1/$N portfolio can be considered as a safe choice.

ii$)$ The $60/40$ portfolio $(60\%$ in equities, $40\%$ in bonds$)$ can be considered as a safe choice.

iii$)$ A portfolio which places larger weights to the less volatile assets $($LowSD$)$ can be considered as a safe choice.

iv$)$ A portfolio which places larger weights to the assets with better risk$/$return characteristics $($HighSR$)$ can be considered as a safe choice.

v$)$ The Global Minimum Variance $($GMV$)$ portfolio can be considered as a safe choice.

vi$)$ The tangency portfolio$/$Sharpe ratio optimiser $($SR$)$ portfolio can be considered as a safe choice.

Question $16$Answer

a$.$

$($i$)$ Disagree, $($ii$)$ Agree, $($iii$)$ Agree, $($iv$)$ Disagree, $($v$)$ Disagree, $($vi$)$ Disagree

b$.$

$($i$)$ Agree, $($ii$)$ Agree, $($iii$)$ Agree, $($iv$)$ Agree, $($v$)$ Disagree, $($vi$)$ Disagree

c$.$

$($i$)$ Disagree, $($ii$)$ Disagree, $($iii$)$ Disagree, $($iv$)$ Disagree, $($v$)$ Agree, $($vi$)$ Agree

d$.$

$($i$)$ Agree, $($ii$)$ Agree, $($iii$)$ Agree, $($iv$)$ Agree, $($v$)$ Agree, $($vi$)$ Agree

e$.$

$($i$)$ Disagree, $($ii$)$ Disagree, $($iii$)$ Disagree, $($iv$)$ Disagree, $($v$)$ Disagree, $($vi$)$ Disagree