Basin Game is designed to play what-if portfolio allocation using returns spread characteristics of assets from three petroleum basins. Assets A and C generate returns of ten and eight percent respectively, with relatively high production variation. Asset B makes return of two percent at much lower variance. Taking into account of your investing style (aggressive, conservative, or moderate) and portfolio allocation, Basin Game calculates the portfolio’s expected return and volatility, as well as comes up with a set of weights that best matches your investing style. For example, use modern portfolio metric, minimum variance for conservative, Sharpe’s ratio aggressive, and moderate approach in between. Play what-if and learn how well your stated style and allocation agree with each other. The goal is developing a better feel for how asset allocation drives risk–return trade off, and shapes portfolio volatility. To start, just say “Alexa, start Basin Game.”
“Conservative allocation asset A thirty asset B thirty asset C forty percent”
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