Quote:
Originally Posted by DaKCMan AP
You somewhat answered your own question: the risk necessary to earn a greater expected return may be too high for an investor. That is why, with the other information you mentioned, one would find the efficient frontier and invest at the defined level of risk. I'm certain whatever class this is for they are building up to that analysis.
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Knowing La Lit, I'm pretty sure its not. He's a word geek, not a numbers geek.