1010

Info icon This preview shows page 1. Sign up to view the full content.

1010 Assumption-ABC 1) Investment prefer lower risk than higher risk when the return is the same 2) People prefer wealth over no wealth Efficient portfolio Half- cut upper half of the bell curve North-west->efficient frontier(blue line on the outside) Risk-free rate Construct the steepest line ( 切线 ) Lending or borrowing - Levering up a portfolio -> borrow too much, too levered, high risk
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.
  • Summer '14
  • wagn
  • Corporate Finance, Modern portfolio theory, risk-free rate, efficient portfolio, EFFICIENT FRONTIER, Bell Curve

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern