Visual Portfolio Statistics
18 Pages Posted: 25 Jun 2006 Last revised: 24 May 2010
Date Written: June 22, 2006
This paper develops visual aids for the understanding of two asset portfolio mathematics. Specifically, visual aids are utilized in teaching portfolio variance and correlation coefficient concepts. The presentation is simple, yet powerful, and is useful for an audience with varying levels of statistical sophistication. Consequently, the visual aids can replace or complement standard presentations of basic portfolio theory.
Keywords: Correlation, Portfolio Statistics, Statistics, Potfolio Theory
JEL Classification: G10, G11, G19
Suggested Citation: Suggested Citation