How Must You Allocate Your Money Among a Number of Investments

question 158

Essay

How must you allocate your money among a number of investments so that your portfolio's overall rate of return will be the same as the simple average of the rates of return on individual investments?

---

Definitions:

Entrepreneurs

Entrepreneurs are individuals who identify business opportunities, acquire and organize the necessary resources to capitalize on them, and bear the associated risks and rewards.

Myths

Widely held but false beliefs or ideas, often used to explain natural phenomena or cultural practices.

Entrepreneurial Success

The achievement of desired goals by an entrepreneur, such as innovation, market impact, profitability, and expansion of the business.

Autonomy

the degree or condition of having the freedom to act independently or self-govern without external control.