Monday, February 18, 2019

equities - How to measure the practicality of a market portfolio for long-term investment?


Do you believe that the composition of the market portfolio that you have found is a desirable or practical one as an investment?


Explain why or why not, based on the positions of your stocks.


I have 30 stocks that I'm analysing and found the market portfolio (tangency portfolio) to have these statistics: Mean=0.03972, S.d=0.0568.


How would I know if the market portfolio is desirable or practical? What should I be looking for exactly?




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