- Joined
- 2/16/12
- Messages
- 3
- Points
- 11
|Stock| Expected Return| Volatility|
|A | 10% | 10% |
|B | 15% | 20% |
You have 1m to invest in either A,B or a combination. Assume stocks are completely independent of each other.
1. How can you maximise your return?
2. How can you minimize volatilty.
3. How can you maximise the sharp ratio of a portfolio
I was going for a programming role and got asked this, I answered
1. 1m B
2. 1m A
3. you will find the max of the portfolio if you find the derivitie of the sharp ratio and equate to 0??
|A | 10% | 10% |
|B | 15% | 20% |
You have 1m to invest in either A,B or a combination. Assume stocks are completely independent of each other.
1. How can you maximise your return?
2. How can you minimize volatilty.
3. How can you maximise the sharp ratio of a portfolio
I was going for a programming role and got asked this, I answered
1. 1m B
2. 1m A
3. you will find the max of the portfolio if you find the derivitie of the sharp ratio and equate to 0??