Question: You have a client that is concerned about minimising downside risk. She would like to choose a portfolio that minimises the probability of a return
You have a client that is concerned about minimising downside risk. She would like to choose a portfolio that minimises the probability of a return below the risk free rate. You are given 3 portfolios with varying expected returns and standard deviations. How would you choose the most appropriate portfolio for the client? Please provide an example.
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