Getting More Out of Two Asset Portfolios
21 Pages Posted: 19 Jun 2006
There are 2 versions of this paper
Getting More Out of Two Asset Portfolios
Getting More Out of Two-Asset Portfolios
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: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
Incomplete Information Equilibria: Separation Theorems and Other Myths
-
Incomplete Information Equilibria: Separation Theorems and Other Myths
-
Production and the Real Rate of Interest: A Sample Path Equilibrium
-
Simple Construction of the Efficient Frontier
By David Feldman and Haim Reisman
-
Simple Construction of the Efficient Frontier
By David Feldman and Haim Reisman
-
Is Learning a Dimension of Risk?
By Massimo Massa and Andrei Simonov
-
The Effect of Information Quality on Optimal Portfolio Choice
-
Belief-Dependent Utilities, Aversion to State-Uncertainty and Asset Prices
-
Belief-Dependent Utilities, Aversion to State-Uncertainty and Asset Prices