MinStdev

MinStdev - Directions: Change the numbers shaded in grey to...

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Unformatted text preview: Directions: Change the numbers shaded in grey to see how the picture changes. Asset A Asset B 0.2700 0.3600 0.0000 σp (σp)2 0.22 0.046656 Standard Deviation of Portfolio stdev Corr 0.90 0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.05 Plot a Portfolio 0.64 wA -1.0 -0.9 -0.8 -0.7 -0.6 -0.5 -0.4 -0.3 -0.2 -0.1 0.36 (1-wA) 2.0 1.9 1.8 1.7 1.6 1.5 1.4 1.3 1.2 1.1 Var[rp] Stdev[rp] 0.59 0.77 0.53 0.73 0.47 0.68 0.41 0.64 0.36 0.60 0.31 0.56 0.27 0.52 0.23 0.47 0.19 0.44 0.16 0.40 0.00 -1.5 -1.0 -0.5 0.0 0.5 Weight in Ass 100% Asset B 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0.13 0.11 0.09 0.07 0.06 0.05 0.05 0.05 0.05 0.06 0.36 0.33 0.29 0.26 0.24 0.23 0.22 0.22 0.23 0.25 100% Asset A 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 2.0 0.0 -0.1 -0.2 -0.3 -0.4 -0.5 -0.6 -0.7 -0.8 -0.9 -1.0 0.07 0.09 0.11 0.13 0.16 0.20 0.23 0.27 0.32 0.37 0.42 0.27 0.30 0.33 0.37 0.40 0.44 0.48 0.52 0.56 0.61 0.65 w the picture changes. 0.90 Standard Deviation of Portfolio 0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00 -1.5 -1.0 -0.5 0.0 0.5 1.0 Weight in Asset A 1.5 2.0 2.5 ...
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This note was uploaded on 03/17/2011 for the course BUS M 410 taught by Professor Brianboyer during the Fall '10 term at BYU.

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