building a portfolio

JosephFrank · November 16th, 2008, 9:46 am

Hi,Assume I want to build a portfolio and I am a moderate risk averse investor. How can I step by step build this portfolio. Am I supposed to build the efficient frontier and take the tangent with the risk free asset then choose the point on the CAL that corrresponds to my utility function? I feel it is too theoretical. In real life don't we pick just few stocks and bonds? if so how should i do it to find the weights that I should invest in each bond and stock?JF