This question requires you to calculate, compare and discuss two portfolios construction techniques ?(i) an Equal-??DollarWeighted portfolio
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This question requires you to calculate, compare and discuss two portfolios construction techniques ?(i) an Equal-??DollarWeighted portfolio and (ii) a Risk Parity portfolio.
a) What are Risk Parity portfolio and how is this portfoliodifferent from an Equal-??Dollar weighted portfolio? Your answer should focus on the exposure to the asset classes in the portfolio?
b )Calculate the volatility and return of an Equal-??Dollar weighted portfolio that is invested 50% in US equities and 50% in Emerging market equities. Use the information (based on a 20 year period) provided below(all figures are in annual terms):
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