Tag: risk-reward combination
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After identifying the tangent portfolio, plot the capital allocation line (CAL). Briefly explain the implication of your CAL, using numbers and values created from your findings above.
Choose any three stocks from the S&P/ASX 20 Constituents (Links to an external site.) that you like. Make sure that the three stocks you chose are in different industries. Assume that the risk-free rate is 3% per year. Consider the following: Go to Yahoo Finance (Links to an external site.) and download their daily historical…