Advantages of Investing in Mutual Funds Professional Management: The most important advantage in investing in a mutual fund is, these are managed by professional who are well qualified in these dealings. Investors generally purchase funds since they lack the time and knowledge which one needs to possess for successfully...

Risk Assets

  • February 3, 2011
  • David Marks
Risk Assets Imagine there are only two efficient portfolios of risky assets, EP1 and EP2.  EP1 offers 10% return and 4% risk.  EP2 offers 16% return and 20% risk.  An investor has $100 to invest and may borrow or lend at the same risk free rate of 4%.  Explain...