Oct 24
Portfolio #2: Moderately Aggressive Portfolio
The second portfolio, as defined by Lydon and Wasik, is moderately aggressive. The holdings and target percentages are listed below.
- SPY = 20%
- VO =15%
- IWM = 15%
- RSP = 10%
- EFA = 10%
- EEM = 10%
- EEB = 5%
- ILF = 5%
- TLT = 10%
Analyzing these holdings using a three-year time duration, as before with the aggressive portfolio, note the following values.
- Return = 9.77%
- SD = 16.6%
- PA = 45.2%
- DM = 21%
- R^2 = 94.6%
The standard deviation (SD) is too high for the return we are collecting from this portfolio. Further, the diversification metric (DM) is too low.
Lowell Herr
Photograph: Nice, France
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