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Step 1: Estimate the expected return

pair of assets.
Step 2: Solve for the weights that minimize the portfolio variance
The portfolio expected return equals a
Step 3: Calculate the expected returns and variances for all the minimum variance portfolios
determined in Step 2.
expected return and variance for each individual asset and the correlation
minimize the portfolio variance subject to the following constraints
The portfolio expected return equals a pre-specified target return
Calculate the expected returns and variances for all the minimum variance portfolios
correlationof each
following constraints
Calculate the expected returns and variances for all the minimum variance portfolios
The graph of the expected return and variance combinations from Step 2 is
frontier.
The graph of the expected return and variance combinations from Step 2 isthe minimum the minimum-variance