answers to problems

Adam Gehr agehr at mozart.depaul.edu
Mon Jan 20 13:19:19 CST 2003


Here are the answers to the problems I assigned in class last Wednesday.

1) 12.1%

6) min variance mean = 15.83, std dev. = 19.94

7) Tangency mean = 19.37, std. dev. = 24.57

8) reward-to-variability = 0.4221

9) std. dev. = 14.21

14) The line connecting two portfolios whose returns are perfectly
correlated (worst case) would be a simple straight line.







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