Known: Risk Aversion coefficient = 4 Expected Return (ER) = 0.05 Std Dev. = 0.034 We have five assets to invest in and $
Posted: Sat Nov 27, 2021 5:17 pm
Known:
Risk Aversion coefficient = 4
Expected Return (ER) = 0.05
Std Dev. = 0.034
We have five assets to invest in and $100,000. We know that
the risk aversion coefficient, A = 4, and the
annual risk-free rate = 2%.
Calculate the dollar amounts allocated to each of
the selected assets and the risk-free asset.
How would u go about solving this in excel?
Risk Aversion coefficient = 4
Expected Return (ER) = 0.05
Std Dev. = 0.034
We have five assets to invest in and $100,000. We know that
the risk aversion coefficient, A = 4, and the
annual risk-free rate = 2%.
Calculate the dollar amounts allocated to each of
the selected assets and the risk-free asset.
How would u go about solving this in excel?