对外经济贸易大投资学课件4.pptVIP

Risk Aversion and Allocation Greater levels of risk aversion lead to larger proportions of the risk free rate. Lower levels of risk aversion lead to larger proportions of the portfolio of risky assets. Willingness to accept high levels of risk for high levels of returns would result in leveraged combinations. Optimal risky portfolio Two factors are important: Correlation between assets Number of assets in the portfolio Combination line of two assets under various correlation ?=-1 ?=1 Power of diversification and the correlation of assets The effects of diversification depends on the correlatio