Optimal Portfolios For Two Assets -

Let’s discuss the proper way to mix two risky assets in a portfolio. I explained mixing one risky asset with cash before. Let’s up the complexity. I’m going to continue exploring how to mix assets3 with the aim of maximizing your long term wealth through the geometric return. If you haven’t read the prior post…

November 18, 2019 May 8, 2020 by btm Let’s discuss the proper way to mix two risky assets in a portfolio. I explained mixing one risky asset with cash before . Let’s up the complexity. I’m going to continue exploring how to mix assets 3 with the aim of maximizing your long term wealth through the geometric return . If you haven’t read the prior post on building portfolios, please start there. This post builds on top of that one, further aiming to implement the concepts of the Kelly criterion . A well known mathematical formula exists for maximizing the long term return

related reading

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• Sharpe ratioen.wikipedia.org
• Being the (Pareto) Best in the World — LessWronglesswrong.com
• Moontower Blogblog.moontower.ai
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• The Kelly Criterion: You Don’t Know the Half of Itblogs.cfainstitute.org
• Copulas.pdfcolumbia.edu