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Plots the risk adjusted returns for portfolios of various allocations to the risky asset.

Usage

plot_risk_adjusted_returns(
  safe_asset_return,
  risky_asset_return_mean,
  risky_asset_return_sd,
  risk_aversion = 2,
  current_risky_asset_allocation = NULL
)

Arguments

safe_asset_return

A numeric. The expected yearly return of the safe asset.

risky_asset_return_mean

A numeric. The expected (average) yearly return of the risky asset.

risky_asset_return_sd

A numeric. The standard deviation of the yearly returns of the risky asset.

risk_aversion

A numeric. The risk aversion coefficient.

current_risky_asset_allocation

A numeric. The current allocation to the risky asset. For comparison with the optimal allocation.

Value

A ggplot2::ggplot() object.

See also

Examples

plot_risk_adjusted_returns(
  safe_asset_return              = 0.02,
  risky_asset_return_mean        = 0.04,
  risky_asset_return_sd          = 0.15,
  risk_aversion                  = 2,
  current_risky_asset_allocation = 0.8
)