Question
You and your significant other disagree on investing philosophies. To not pick sides, you want to figure out what portfolio would work for each of
You and your significant other disagree on investing philosophies. To not pick sides, you want to figure out what portfolio would work for each of you.
YOU: You are comfortable with a portfolio that has at most a standard deviation of 25%, you want to figure out what weights of the assets A, B, and C will give you the maximum return.
YOUR PARTNER: Your partner has figured out if they can hit an 18% return with their portfolio, they can retire at 55. In this case, what weights of the assets give the minimum standard deviation of the portfolio?
Hint: Manually try out different weights on the portfolio assets.
Bigger hint: Both answers end up with 0% weight in one of the assets!
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