|
|
| Chapter 5 - Modern Portfolio Theory |
| 89 |
Where beta=0.5 towards the bottom of the page
50%
|
Risk free:
Index Fund:
Portfolio: |
$500,000.
$500,000.
$1,000,000. |
@3.2%
@11.2%
|
=
=
|
$516,000.
$556,000.
$1,072,000. |
|
|
| 89 |
Where beta=2 at the bottom of the page
200%
|
Risk free:
Index Fund:
Portfolio: |
-$1,000,000.
$2,000,000.
$1,000,000. |
@3.2%
@11.2%
|
=
=
|
- $1,032,000.
$2,224,000.
$1,192,000. |
|
|
| 92 |
The Coefficient of Variation should be given as:
|
|
