'Tangency portfolio' presentation slideshows

&2.1 Trading off Expected return and risk

&2.1 Trading off Expected return and risk. How to invest our wealth? To maximize the expected return; To minimize the risk=Variance return. &2.2 One risky asset and one risk-free asset.

468 views • 38 slides

Chapter Three Capital Asset Pricing Model

Chapter Three Capital Asset Pricing Model. Perfect Market Conditions. Look for higher return, nonsatiation. Look for lower risk, risk aversion. Assets are infinitely divisible. Taxes and transaction costs are negligible All investors have the same one-period.

492 views • 37 slides

Introduction to Financial Management

485 views • 26 slides

Introduction to Financial Management

370 views • 26 slides

Introduction to Financial Management

365 views • 26 slides

Optimal Risky Portfolios

Optimal Risky Portfolios. Objective. Objective - finding the optimal risky portfolio Start with two risky assets find portfolios with lowest possible risk, given a set of assets find the tangency portfolio based on the set of risky assets and the risk-free asset

371 views • 17 slides