Optimal portfolio for an investor is where the Capital Allocation Line is tangent to the “indifference curve”. The optimal risky portfolio is where the Capital Allocation Line is tangent to the “Markowitz Efficient Frontier”. Remember, this will be above the Global Minimum Variance. Again, being below the line is inefficient, because the investor will be accepting more risk, for the same kind of returns.
0 Comments
Leave a Reply. |
Archives
June 2019
Categories |