kinked_CAL_lines

kinked_CAL_lines - Expected Return 0.13 (use statistics...

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Instructions: Change the content in the grey shaded cells and see how t Risk-Free Rates Lend Borrow 0.10 0.10 E[r] σ Sharpe1 Sharpe2 Vanguard 0.11 0.04 0.2857 0.2857 Mosaic 0.12 0.06 0.3333 0.3333 σ Point of intersection Lines do not cross. Plot a Portfolio Using Vanguard and Bonds green dot Portfolio weights 0.75 Weight in Vanguard 0.25 Weight in risk-free asset Expected Return 0.11 (use statistics rule #3) Standard Deviation 0.03 (use statistics rule #4) Plot a Portfolio Using Mosaic and Bonds blue dot Portfolio weights 1.50 Weight in Mosaic -0.50 Weight in risk-free asset
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Unformatted text preview: Expected Return 0.13 (use statistics rule #3) Standard Deviation 0.09 (use statistics rule #4) Points to help make chart Vanguard Long Bonds Short Bonds 0.1 0.04 0.11 0.04 0.11 0.09 0.13 Mosaic Long Bonds Short Bonds 0.1 0.06 0.12 0.06 0.12 0.12 0.14 Portfolio Point - Vanguard 0.03 0.11 Portfolio Point - Mosaic 0.09 0.13 the diagram changes. 0.02 0.04 0.06 0.08 0.1 0.12 0.14 0.02 0.04 0.06 0.08 0.1 0.12 0.14 0.16 Portfolio Standard Deviation Portfolio Expected Return...
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kinked_CAL_lines - Expected Return 0.13 (use statistics...

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