Week 4 Portfolio 2 - 2 Minimum risk portfolio equation...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Minimum risk portfolio equation: W A = σ B ( σ B - ρ AB σ Α 29/σ 2 Α + σ 2 Β - 2 ρ AB σ Α σ Β Our text explains: if the equation results in a negative number that means that security A is sold short. If the equation results in a value greater than 1, security B is sold short. In a short sale the expectation is to borrow, sell, and then buy back at a
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Ask a homework question - tutors are online