Calculating Efficient Frontier For Strategic Decision
Business & Finance, Finance & Investing, Finance
| Author: | Homework Help Classof1 | ISBN: | 1230000114312 |
| Publisher: | Classof1 | Publication: | March 11, 2013 |
| Imprint: | Language: | English |
| Author: | Homework Help Classof1 |
| ISBN: | 1230000114312 |
| Publisher: | Classof1 |
| Publication: | March 11, 2013 |
| Imprint: | |
| Language: | English |
"Calculate an Efficient Frontier.How?
-Pick y to be your investment in Stock A, where y goes from 0 to 1
-Increment size? Your choice. You can try 0.25 to start, ideally down to 0.01.
•Pick z to be your investment in Stock B, where z goes from 0 to 1 - y
•Therefore you invest (1 – y – z) in C
•Calculate for each y and z, your portfolio’s return and standard deviation
•Plot the graph of the resulting portfolio returns and standard deviations
"
"Calculate an Efficient Frontier.How?
-Pick y to be your investment in Stock A, where y goes from 0 to 1
-Increment size? Your choice. You can try 0.25 to start, ideally down to 0.01.
•Pick z to be your investment in Stock B, where z goes from 0 to 1 - y
•Therefore you invest (1 – y – z) in C
•Calculate for each y and z, your portfolio’s return and standard deviation
•Plot the graph of the resulting portfolio returns and standard deviations
"
