This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: r i = ∆ r M ⇒ risk i = risk M ⇒ r i = r M • ß M = 1 n • portfolio ß = ß p = ∑ w i ß i i=1 • the portfolio ß is the weighted average of the individual ß’s, using percentage of portfolio value as weights Shift in the SML Caused by an Increase in Inflation (k = r) Shift in the SML Caused by Increased Risk Aversion...
View Full Document
This note was uploaded on 09/27/2009 for the course UGBA 133 taught by Professor Distad during the Summer '08 term at Berkeley.
- Summer '08