Explain why the optimal weights on the risky assets change so drastically when going from the optimal 7%-mean, short-sel
Posted: Sun May 08, 2022 9:55 am
Explain why the optimal weights on the risky assets change so drastically when going from the optimal 7%-mean, short-selling-allowed portfolio using the 4 risky assets to the optimal 7%-mean, short-selling-allowed portfolio using the 5 assets (4 risky + 1 riskless). Be as clear as you can.