Getting More Out of Two Asset Portfolios

21 Pages Posted: 19 Jun 2006

See all articles by Tom Arnold

Tom Arnold

University of Richmond - E. Claiborne Robins School of Business

Lance A. Nail

University of Alabama at Birmingham - Department of Finance, Economics, and Quantitative Methods

Terry Nixon

Miami University

Multiple version iconThere are 2 versions of this paper

Date Written: September 1, 2005

Abstract

Two asset portfolio mathematics is a fixture in many introductory finance and investment courses. However, the actual development of the efficient frontier and capital market line are generally left to a heuristic discussion with diagrams. In this paper, the mathematics for calculating these attributes of two asset portfolios are introduced in a framework intended for the undergraduate classroom.

Keywords: pedogogy, minimum variance portfolio, efficient frontier, capital allocation line

JEL Classification: G10,G11

Suggested Citation

Arnold, Thomas M. and Nail, Lance A. and Nixon, Terry David, Getting More Out of Two Asset Portfolios (September 1, 2005). Available at SSRN: https://ssrn.com/abstract=909543 or http://dx.doi.org/10.2139/ssrn.909543

Thomas M. Arnold (Contact Author)

University of Richmond - E. Claiborne Robins School of Business ( email )

1 Gateway Drive
Richmond, VA 23173
United States
804-287-6399 (Phone)
804-289-8878 (Fax)

Lance A. Nail

University of Alabama at Birmingham - Department of Finance, Economics, and Quantitative Methods ( email )

Birmingham, AL 35294
United States
205-934-8501 (Phone)
205.975.4427 (Fax)

Terry David Nixon

Miami University ( email )

Oxford, OH 45056
United States

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