Working with a Riskless Asset

The PortfolioMAD object has a separate RiskFreeRate property that stores the rate of return of a riskless asset. Thus, you can separate your universe into a riskless asset and a collection of risky assets. For example, assume that your riskless asset has a return in the scalar variable r0, then the property for the RiskFreeRate is set using the PortfolioMAD object:

r0 = 0.01/12;

p = PortfolioMAD;
p = PortfolioMAD('RiskFreeRate', r0);
disp(p.RiskFreeRate)

 8.3333e-04

See Also

PortfolioMAD | setCosts | setScenarios | simulateNormalScenariosByMoments | simulateNormalScenariosByData

Related Examples

• Working with Transaction Costs
• Asset Returns and Scenarios Using PortfolioMAD Object
• Creating the PortfolioMAD Object
• Working with MAD Portfolio Constraints Using Defaults
• Validate the MAD Portfolio Problem
• Estimate Efficient Portfolios Along the Entire Frontier for PortfolioMAD Object
• Estimate Efficient Frontiers for PortfolioMAD Object
• Asset Returns and Scenarios Using PortfolioMAD Object

More About

• PortfolioMAD Object
• Portfolio Optimization Theory
• PortfolioMAD Object Workflow