Exp Return

Stock A
Stock B

16
18

Std Devn Investment Weight Weight Sq Variance

19
60000
0.6
0.36
361
21
40000
0.4
0.16
441

Exp R on Portfolio

Corr=+1 Corr=-1 Corr=0.60

Weight B Exp Return SD
SD
SD
0
16
19
19
19.00
0.1
16.2
19.2
15
15.93
0.2
16.4
19.4
11
13.12
0.3
16.6
19.6
7
10.77
0.4
16.8
19.8
3
9.25
0.5
17
20
1
8.99
0.6
17.2
20.2
5
10.08
0.7
17.4
20.4
9
12.17
0.8
17.6
20.6
13
14.83
0.9
17.8
20.8
17
17.82
1
18
21
21
21.00

SD Portfolio
-1
-0.8
-0.6
-0.4
-0.2
0
0.2
0.4
0.6
0.8
1

3
6.877790343
9.252459133
11.13157671
12.73640452
14.16050847
15.45393154
16.64716192
17.7604054
18.80787069
19.8

EFFICIENT FRONTIER
18.5
18
EXPECTED RETURN

Corr

16.8

17.5
17

EFFICIENT FRONTIER

16.5
16
15.5
0.00

5.00

10.00

15.00

STANDARD DEVIATION

20.00

25.00