{"id":78181,"date":"2021-12-01T05:36:03","date_gmt":"2021-12-01T05:36:03","guid":{"rendered":"https:\/\/papersspot.com\/blog\/2021\/12\/01\/weights-of-different-portfolios-ranging-from-100-risk-free-to-200-equity\/"},"modified":"2021-12-01T05:36:03","modified_gmt":"2021-12-01T05:36:03","slug":"weights-of-different-portfolios-ranging-from-100-risk-free-to-200-equity","status":"publish","type":"post","link":"https:\/\/papersspot.com\/blog\/2021\/12\/01\/weights-of-different-portfolios-ranging-from-100-risk-free-to-200-equity\/","title":{"rendered":"Weights of Different portfolios ranging from 100% risk free to 200% equity."},"content":{"rendered":"<p>Weights of Different portfolios ranging from 100% risk free to 200% equity.<\/p>\n<p> Picture1-3.png<\/p>\n<p> Market portfolio consists of all sets of investments which are available in the market. It Is made up of all the assets that are available in the investment universe and each asset is allocated with different weights in order to form market portfolio. This market portfolio is somehow similar to the 20 securities portfolio in a way that it has optimal portfolio which is efficient market frontier. On the other hand it has capital market line which is consists of risk free rate that includes risk free securities. Furthermore, it is composed of combination of different assets consists from risk free assets to 100% equity to 200% equity portfolio. In this assumed scenario, risk free rate was 5% which is guaranteed and standard deviation is 0.2 along with expected return ranging from 10% to 14%. This blended portfolio gives investor an option to select from multiple portfolio and if investor is totally risk averse then he\/she can invest in risk free securities which gives guaranteed return in this case 5%. So investor has multiple options to decide which portfolio is better for him based on the risk-return trade off and investor\u2019s risk tolerance level.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Weights of Different portfolios ranging from 100% risk free to 200% equity. Picture1-3.png Market portfolio consists of all sets of investments which are available in the market. It Is made up of all the assets that are available in the investment universe and each asset is allocated with different weights in order to form market [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[10],"class_list":["post-78181","post","type-post","status-publish","format-standard","hentry","category-research-paper-writing","tag-writing"],"_links":{"self":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/78181","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/comments?post=78181"}],"version-history":[{"count":0,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/78181\/revisions"}],"wp:attachment":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/media?parent=78181"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/categories?post=78181"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/tags?post=78181"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}