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Old 02-20-2013, 08:14 PM   #39
cdcox cdcox is offline
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Join Date: Sep 2000
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This is a stupid problem. Why would you want less than the maximum expected rate of return?

Now a more interesting question would be to develop a portfolio that maximizes the rate of return while mitigating risk. To properly answer this question we would need to know the uncertainty or expected variance of each of the investments. Also, we need to know the extent to which the various holdings are correlated with one another. We could then present various portfolios match the career stage and risk tolerance of an individual investor. Do you have a problem like that?
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