Doubts

Exercise Set 4 - question 6.c)

Re: Exercise Set 4 - question 6.c)

by Julio Crego -
Number of replies: 0
I am sorry, I do not see where we use market values.

Just in case it helps, we are interested in the level of risk per euro invested. This way, we can compare investment opportunities with different initial investment levels. To get the risk per euro, we always compute the variance or standard deviation of the returns.