Getting More Out of Two-Asset Portfolios

10 Pages Posted: 24 Aug 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

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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 article, the mathematics for calculating these attributes of two-asset portfolios are introduced in a framework intended for the undergraduate classroom.

JEL Classification: G10, G11

Suggested Citation

Arnold, Thomas M. and Nail, Lance A. and Nixon, Terry David, Getting More Out of Two-Asset Portfolios. Journal of Applied Finance, Vol. 16, No. 1, Spring/Summer 2006. Available at SSRN: https://ssrn.com/abstract=926176

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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