elton

  1. A

    Mean variance analysis

    Hi, I have a question and I know the answer for it is c, I understand why, but there is option d that I cannot understand as not being another correct answer. As per me, the correct answer should be options c and d... Can you please explain? Question:
  2. Branislav

    Elton Question 13.1,Video,Apply the CAPM in calculating the expected return on an asset-

    Dear David, Sorry if missed something, but why do you think that RF should be stated in the question? It could be derived from the equations? Maybe irrelevant but I am afraid I am missing something methodologically important. Thanks in advance
  3. J

    question about CAPM

    why is correlation included to solve the problem? I cant see anything in the notes when we multiply the two terms x correlation? Beta (i,M) = covariance(i, M)/variance(M) = 24%*15%*0.70/15%^2 = 1.12 <<- must know all of these steps! CAPM: E[R(i)] = Rf + Beta (i,M)*[R(M) - Rf] = 3% +...
  4. Jorge.Beca

    Derivation of minimum variance portfolio

    Hi, I am going through the excel sheet (R8-P1-T1-Elton-CAPM-v3) in section 9, and I saw the formula to find out Wa for the Minimum variance portfolio. It is not very intuitive to see that that formula is the 1st derivative of the portfolio variance with respect Wa. I know the formula is not part...
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