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    Comparing risky assets

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    Using two risky assets, one offers a higher return than the other, but it also has a higher standard deviation. Will one of these assets always lie on the efficient frontier? Will one of them always be inefficient if held alone?

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    Making an investment decision can be very stressful not only for new investors but also for established investors. In order to make an investment, investors must almost always accept a certain level of risk that comes with any particular investment. There are mainly three different kinds of investors: high risk investors, moderate investors and low risk investors. Those investors that consider investing in risky assets usually limit themselves to those assets that offer the maximum expected return for a given level of risk ...

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    This solution compares risky assets.