HdOut6-EfficientFrontiers

HdOut6-EfficientFrontiers - l0 /51cn E-1^- r EYf'c' cnl (...

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Unformatted text preview: l0 /51cn E-1^- r EYf'c' cnl ( ,i\"rr,- V/a,^,o'nt( 'fbu',. fro,rf, rr--l(EO Offr ," ; zt+, t"'' ( n rtt) \ t'7ze [-r "a r--:IT {rtnr"- Pl'' D' En fhta"y tht;c '7 bafw {c r't h co't'(' cr-tl ie. 'T't r' f hci'e f,,n lo"t'o'" L'e/' Da n0,7=rt: tf-'1-( 2 fci (:fic-z * I /5' Ber?a brr,-zrL-t U? " fhe- Inr-;--in/"-', Dr',-' ''t Let every man divide his mone1, into tlree parts, and invest a third in land, a third in business, and a third let him keep in reset've.-Talmud (c. t200 ec-500 eo) TT L.JOULD BE UI{t,JISE TO INVEST IN JUST ONE SICK CO[^J, BUT IF YOU AGGREGATE A BUNCH OF THEI1 TOGETHER, THE RISK GOES AI.dAY. d ui lt rl .J 6 o d o 6 3 o o o @ o o ol @ co a DIIBERT ScottAdams YOU SHOULD INVEST ALL OF YOUR I-\ONEY IN DISEASED LIVESTOCK. DOGBERT THE FINANCIAT ADVISOR SUDDENLY I FEEL ALL 5AVVY. The Underlying Theory lro (rewhrd) (\*'' Vcsr ia nea- ft n- l7*;* Mean/Standard Deviation Space Return/F:lisk Space op (risk) lhe E,f a& G € ha > j.trn 1 F l,rot ; ' jarr> 4 f ,'t K A+# c;sK lb l/ " - trlQ pa inT s-, /r -- a "F f-;:k qj C_ qe< -phble : q lo,.-ct' f etuf rT louns,n Se.fctf n Sante f-etrsf rl *rzz€ tefurn ar,*/ar Ot I oi,"tT a P., ntS q5 B thon A a n-? e, d ''-tJ q n/ 6 ho; httrhcr ti:ft thoo B a.r! o /l h..-, F \Dr 7iv.cn ^^is'R Fo" \ivrn fcTc:rn f-lr.s. po;,rt'l " ic- A/" l-- th*t t l" . + <_ ..L Its 6ar i,1 Thz "F fhe qr*ph, The Underlying Theory [.rp (reward) B7A A v5, D C7D 0p (risk) 7 P b secvqt:a ns \v Tlre.r. qscets in fA<- =fe c-F> i,r f A c b.4s i n TL-,e- F-, rrra,ak e-f vr'; lsh;r - Lehrno n ar 4 " (nony Ovcr' laao Ov.r tzdE E-r-aler- /r t; {ao r*t-a ft11r-q;f<.-- flory " thct The P.lurn /ri+k cdiT'h;'-ot;on> lhesc a3tc-le cdn Le Tlalfzl f .l,:rn v5- cis K lFFh q 5 r (^ // fr, 1o'[n aF Prt a E ll o'r'5'. nnhioh f'll a.fe: Ferr q trt r/<r" letarn' q 1tt/c n ( ( ( ( € Th- f'-o vvh roh 7a;rlf= ' llot fhe' ai-r'tount " l{a s the' f,a, z- f ule > ,F fhu^b c.re- acee'4t^ble Irr1h.-t ftlcrcn aY ri=K ) la,u.sl t^;=h 4 ri4 (p*) Anofher CL=<rubtroq ASaurne in f\. f,-o 3eoa- u;ntg, X anl Y d,r. -Fts.- r e,if *baye, d S 5h o,-,n be_i ort, tfiLt4d-Uvh;le {' olo'-c ar y olonc *. u/J rrta ka oo e-F?;.-r..* "7arfSul;ot aq cotz>biaot;on aF X .r'0 Y Vy' o ct ll^'-L e eFF' , ' nt Co*b,nq-f,on= ,F X oJ y va,, l3 be on fk< / o tlel ! ,n s M/A't/X be/* € e. X ^,-J y. / F X arJ Y v".erC Fu,*f.-f ly carf e /--t'.-/.t ,fF X anl Y vve.rZ l"=+ tl* n F...l=.-l ly Lz->t,t./-te{r,. fhe c-ufral canr->o.f,.,rX X qr>J y uzrul/ be "Itor-./ c)c) "('Lot>(-qv1 "Jou,-r- ") cc> Aho,-.n 6y fAz sal;./ Wa* Cc:f ,e. Th< r.;> ik * f cl rr r_ C aaLzr>ot.on7 , F _ // tl, ._ ?oiDt5 o12 th't >ol;/ c,urv( qr( .rl/o;,-.,ob/e ar->& at( Cr,-FeroL/e t tAe poi,-tf1 zr= Thc Prf .P /i,ra"( lo*., r;rk frr Sqnte (-e.tu,^n) rD/ ' : Thc /.1{ac '" F thc Lctf ratu te anp fh e J<7le c aF the l-;eF TcJoef ra t1 J4e fo oQ;ret aiF;c^t;an Wp, ),a cf =e)c S q, fha Laf f .l-,tio,-, Cai FF;- $-,-t Jec,^ea>e=) [^.r- f I fo,zorl -l- 5o *hen X o,J / aPe c-arnWn-/ in ot f art ial[;o, fh....
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This note was uploaded on 09/08/2010 for the course BUS 172B at San Jose State University .

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HdOut6-EfficientFrontiers - l0 /51cn E-1^- r EYf'c' cnl (...

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