The assets page lets you add assets or asset classes to your portfolio, and describe the expected distribution of those assets over time.
You can add any number of assets to your portfolio, and the table has options for duplicating existing assets.
To model the change in asset prices over time, we need to describe the
expected distribution of those prices. This model supports normal and
log-normal asset pricing models.
In a normal pricing model, we assume that the asset price is itself normally distributed over time.
In a log-normal pricing model, we assume that the change in asset prices is log-normally distributed.
Selecting which model to use is a question of policy.
The assigned column in the asset table indicates the weight (percentage of
the total portfolio) assigned by the model to each individual asset.
If you leave the weight values in the table blank, the model will assign equal weights to all assets.
If you enter a weight for any individual asset, the model will use that weight for the asset and distribute the balance equally across the remaining assets. You can enter a weight of zero for an asset, in which case it will not be included in the portfolio.
If the total weight value is greater than 100%, the weights will be scaled down so that the total portfolio weight is 100%.