The portfolio weights

Introduction to Portfolio Analysis in R

Kris Boudt

Professor, Free University Brussels & Amsterdam

Investment decision choices

There are two similar companies: Do you invest in either of them based on a coin toss?

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¹ Source: ICMA Photos, Flickr

There are two similar companies: Do you invest in either of them based on a coin toss?

ch_1_video_2.006.png

¹ Source: ICMA Photos, Flickr

There are two similar companies: Do you invest in either of them based on a coin toss?

ch_1_video_2.007.png

¹ Source: ICMA Photos, Flickr

There are two similar companies: Do you invest in either of them based on a coin toss?

ch_1_video_2.008.png

¹ Source: ICMA Photos, Flickr

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values <- c(500000, 200000, 100000, 20000)
names(values) <- c("Inv 1", "Inv 2", "Inv 3", "Inv 4")
weights <- values/sum(values)

barplot(weights)

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values <- c(500000, 200000, 100000, 20000)
names(values) <- c("Inv 1", "Inv 2", "Inv 3", "Inv 4")
weights <- values/sum(values)

barplot(weights)

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¹ Source: http://www.falibo.com/vocabulary/idiom-dont-put-all-your-eggs-in-one/

Introduction to Portfolio Analysis in R