at 17:26, can't we do it like - W1 (1) * R (16) + W2 (+.5) * R (16-10), that also gives 19%. And for Risk - 1*(30%) + 0.5 * (30%) = 45%. Please tell me if there is a mistake with this approach. And amazing videos btw, will definitely buy your L2 package.🔥
The risk measure on the capital market line diagram is total risk. However, all portfolios that lie on the CML are well diversified and have only systematic risk. This is because portfolios on the CML are all constructed from the risk-free asset and the (well-diversified) market portfolio. IFT Support Team
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I am very happy to find this video. This helps tremendously.
Are you doing CFA ?
The example at 17 min was superb!
Glad you liked it.
IFT Support Team
at 17:26, can't we do it like - W1 (1) * R (16) + W2 (+.5) * R (16-10), that also gives 19%.
And for Risk - 1*(30%) + 0.5 * (30%) = 45%.
Please tell me if there is a mistake with this approach.
And amazing videos btw, will definitely buy your L2 package.🔥
10.18 mins. Should 75% weight not be of the risk free asset and 25% weight of the market?
Hi Sir, are portfolios on the CML efficient (well-diversified) and have no unsystematic risk?
The risk measure on the capital market line diagram is total risk. However, all portfolios that lie on the CML are well diversified and have only systematic risk. This is because portfolios on the CML are all constructed from the risk-free asset and the (well-diversified) market portfolio.
IFT Support Team
12:36 you said risk free, whereas it should be risky asset.
Thanks for your feedback. We will update it.
IFT support team