Simple question, what is the definition of a risky portfolio? Unbelievably, I can’t find an answer to this.

High returns volatility?

The one that bears no risk-free assets.

Not quite.

A risky portfolio is any portfolio whose standard deviation of returns isn’t zero.

Thanks.

Agree, thanks S2000. Also, the correlation between a risky-asset and a risk-free asset is zero (well in the theory at least); check for further references PORTFOLIO RISK AND RETURN: PART I

S2000magician: christopheausina:The one that bears no risk-free assets.

Not quite.

A risky portfolio is any portfolio whose standard deviation of returns isn’t zero.

Agree, thanks S2000. Also, the correlation _

of returns_ between a risky-asset and a risk-free asset is zero . . . .

True. That’s a direct consequence of the risk-free asset having a standard deviation of returns of zero.

christopheausina:The one that bears no risk-free assets.

Not quite.

A risky portfolio is any portfolio whose standard deviation of returns isn’t zero.

what does it even mean that the portfolio’s standard deviation of returns is zero. So, a portfolio’s standard deviation return of a 10 year US bonds is zero? So the yields should stay flat forever? How can that be even mathetically possible

S2000magician: christopheausina:The one that bears no risk-free assets.

Not quite.

A risky portfolio is any portfolio whose standard deviation of returns isn’t zero.

what does it even mean that the portfolio’s standard deviation of returns is zero. So, a portfolio’s standard deviation return of a 10 year US bonds is zero? So the yields should stay flat forever? How can that be even mathetically possible

It means that the return never changes.

So, a portfolio’s standard deviation return of a 10 year US bonds is zero?

Of course not.

So the yields should stay flat forever?

For the risk-free asset: yes.

How can that be even mathetically possible

*r*_{1} = *r*_{2} = *r*_{3} = ∙ ∙ ∙ = *r _{n}*.