Minimum-Variance Frontier

Minimum-Variance Frontier - 186.40 13.65% 13% 0.8 204.85...

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Asset 1 Asset 2 Large-Cap Stocks Government Bonds Expected return 15% 5% Variance 225 100 Standard deviation 15% 10% Correlation 0.8 Portfolio Portfolio Expected Large-Cap Variance Standard Deviation Return 100.00 10.00% 5% 0.0 104.85 10.24% 6% 0.1 111.40 10.55% 7% 0.2 119.65 10.94% 8% 0.3 129.60 11.38% 9% 0.4 141.25 11.88% 10% 0.5 154.60 12.43% 11% 0.6 169.65 13.02% 12% 0.7
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Unformatted text preview: 186.40 13.65% 13% 0.8 204.85 14.31% 14% 0.9 225.00 15.00% 15% 1.0 Stocks ( w 1 ) Government 1.0 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0.0 Bonds ( w 2 ) 9.00% 10.00% 11.00% 12.00% 13.00% 14.00% 0% 2% 4% 6% 8% 10% 12% 14% 16% Standard Deviation Expected Return 15.00% 16.00%...
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This note was uploaded on 01/16/2011 for the course FINACE BA3340 taught by Professor Bend during the Spring '10 term at UT Arlington.

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Minimum-Variance Frontier - 186.40 13.65% 13% 0.8 204.85...

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