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portfolio theory assumption

Hi,
I was reviewing some level 2 portfolio theory readings and it says that one basic portfolio theory assumption is that “as an investor you want to maximize your returns for a given level of risk. It goes on to say to adequately deal with such an assumption, certain ground rules must be laid.
“First your portfolio should include all your assets and liabillities including things like your house, car , stamp collection, furniture , coins, art and antiques etc.”
I did not understand the idea and meanning of this assumption. can someone explain what the point is here.

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