In a Two Asset Portfolio, What Happens to the Portfolio

question 5

Essay

In a two asset portfolio, what happens to the portfolio weight of the better performing asset?

---

Definitions:

T Accounts

A graphical representation used in accounting to show the effects of transactions on individual accounts.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and losses.

Cash Receipts

Inflows of cash, often from sales, interest, or dividends.

Supplies Expense

Costs incurred for items used in the operation of a business, not directly tied to the production of goods or services.