Interpretation:
- Minimum Variance Portfolio (MVP): This allocation aims to achieve the lowest possible risk (volatility) for a portfolio combining the two assets.
- Maximum Sharpe Ratio Portfolio (MSRP) / Tangency Portfolio: This allocation aims to provide the highest risk-adjusted return (return per unit of risk) relative to the risk-free rate. It is often considered an optimal portfolio for balancing risk and reward if a risk-free asset is available. (Requires Risk-Free Rate input).
Allocations are constrained between 0% and 100% for each asset (no short selling). Results are based on your inputs; actual market performance can vary. This tool is for informational purposes and does not constitute financial advice.
