Question: If you are constructing a simple two assets portfolio: one risky asset, either US equity or Hedge fund, and a T-bill. For the risky asset,

If you are constructing a simple two assets portfolio: one risky asset, either US equity or Hedge fund, and a T-bill. For the risky asset, do you choose US equity or Hedge fund? Why? Compare the return performance of an 80/20 portfolio in US equity/T-bill and an 80/20 portfolio in Hedge fund/T-bill. Discuss.

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