Is it me, or is this equation missing the entire wjSigmaj part???????
it only lists i, but then proceeds to list covariance for i and j, when it doesnt even show j being included in the formula??????
The formula is on page 238 of volume 4 CFAi text. It is the formula for the standard deviation of a portfolio of N assets, a bit concentrated, but correct. If you know the formula for a portfolio of 2 (maybe 3) assets, that’s sufficient for the exam.
yes, I know the formula but it seems to me like this one is missing the whole weight in j sigma of j yet it lists the covariance of i,j.
I know to just put it in there but stuff like this will throw you off when its presented. It did for me at least.
DId anyone figure out what was going on with the explanation for the practice problem in reading 50, #1.
The answer for this problem at the back of the book is a detailed enough.
j appears in the second part of the equation to get all the combinations of individual sigma*weight. Stick with a 2 asset portfolio formula, you’ll be just fine.
发表于 2013-4-17 19:29
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