Risky Portfolio Definition

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.


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

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

Of course not.

For the risk-free asset: yes.

r1 = r2 = r3 = ∙ ∙ ∙ = rn.