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cpk to the rescue

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there is no requirement anywhere which says that expected return should be 5%. Requirements are:
1) Portfolio should not fall below 1800000
2) Aspiration of 2100000 with 80% probability
There is no other requirement.  and these requirements are delivered by layer 2. and not by the suggested portfolio of layer 1 and layer 3

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Layer 1 is riskless - so it meets the requirements.
Layer 3 - provides with an E(R) of 24.75% which meets the requirements.

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Can you post the whole question, so that we know what we are talking about?

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