Volatility Higher than Expected Discuss what happens to the optimal allocation when volatility becomes higher than expected. Explain your reasonsings. There are some hints on the slides, and I would also suggest you to draw the mean-standard deviation plot to analyse the market changes. Volatility Higher than Expected Discuss what happens to the optimal allocation when volatility becomes higher than expected. Explain your reasonsings. There are some hints on the slides, and I would also suggest you to draw the mean-standard deviation plot to analyse the market changes