标题: Human Capital as a Risky Asset [打印本页] 作者: Viceroy 时间: 2011-7-11 19:05 标题: Human Capital as a Risky Asset
CFAI volume 2, page 327, states that for young investors with equity-like Human Capital the financial assets should be invested predominantly in fixed-income assets. It goes on to state that "because the value of one's human capital declines with age, the share of risk-free assets in the stockbroker's portfolio will also decline and the share of risky assets (...) will rise until retirement".
Then, on the next page, figure 9 shows the opposite. In scenario 1 (that of Human Capital risk highly correlated with the risk of other risky financial assets) the proportion of the risk-free assets starts at about 10% for age 30 (that is, not predominant at all), and increases (instead of decreasing) until reaching a maximum of about 70% at age 65.
The text explanation seems straightforward enough - but then why does the figure blatantly contradict the text?
Any comments?作者: Iginla2011 时间: 2011-7-11 19:05
The question is:
If I'm a young investor with equity-like human capital highly correlated with other risky financial assets, should I:
a)invest predominantly in risk-free fixed-income assets (page 327)
or
b) invest only about 10% of my portfolio in risk-free assets (figure 9, page 328)
