Chapter 6, Problem 14PS

Summary Introduction

To calculate:Theinvestment proportions of the client’s overall portfolio which includes the position in T-bills also.

Introduction:

Investment proportion: It states the proportion in which proper diversification of the investment should take. This is done to reduce the risk factor. An ideal investment proportion would take place when every aspect of total return over a time period is considered and this happens only when there is are combinations of investments.