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?© BrainMass Inc. brainmass.com June 4, 2020, 2:33 am ad1c9bdddf
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 ...
This solution compares risky assets.