You want to match the volatility of the two assets you’re comparing. In my simulations, I leveraged both up to 30% volatility, but I might have neglected to mention that I was leveraging the AI basket.
Yeah, I didn’t go through carefully, but I definitely missed that—though arguably leveraging AI more as a hedge would make sense, since it’s only valuable in worlds where it takes off.
It seems strange to talk about leveraged MVO assets, but not talk about leveraged investments in the AI basket. Am I missing something?
You want to match the volatility of the two assets you’re comparing. In my simulations, I leveraged both up to 30% volatility, but I might have neglected to mention that I was leveraging the AI basket.
Yeah, I didn’t go through carefully, but I definitely missed that—though arguably leveraging AI more as a hedge would make sense, since it’s only valuable in worlds where it takes off.