Unformatted text preview: a problem or two with specific numbers, you can use this tool for as many problems as you have time to solve. Stock A Stock B RiskFree Asset wA wB Portfolio E(R) 6.00% 15.00% 2.00% 70.00% 30.00% 8.70% Stdev(R) 10.00% 40.00% 10.44% Var(R) 0.01000 0.16000 0.01090 Covariance0.0200 Correlation0.5000 Sharpe Ratio 0.642 Finding the market (tangency) portfolio wA wB E(RM) Var(RM) Stdev(RM) Sharpe Ratio 0.8108 0.1892 7.70% 0.00617 7.85% 0.726 Finding the minimum variance portfolio wA wB E(R_MVP) Var(R_MVP) Stdev(R_MVP) Sharpe Ratio 0.8571 0.1429 7.29% 0.00571 7.56% 0.699...
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 Fall '08
 RAYMONDKAN
 Variance, Modern portfolio theory, wA, sharpe ratio, minimum variance portfolio

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