标题: cracking true or false question [打印本页] 作者: Bad5shah 时间: 2011-7-11 19:48 标题: cracking true or false question
Individual securities do not lie on the CML or the Markowitz efficient frontier.
true or false?作者: JGovender 时间: 2011-7-11 19:48
Thats what I thought..
BUT....wont an individual security that offers the HIGHEST possible return plot on the efficient frontier?作者: MonkeyBusiness 时间: 2011-7-11 19:48
hmmmm, can't give a precise answer...individual securities are inefficient "portfolios" that's the way i see it作者: koba 时间: 2011-7-11 19:48
but the efficient frontier's 'end points' have to be the assets offering the lowest and highest returns...
I need to STOP!!作者: suyash1989 时间: 2011-7-11 19:48
sarah, take a good hour of sleep after lunch if possible...i did it and even so i continue to feel very near to burn out mode...not a good prosect for tomorrow...作者: ajpheif16 时间: 2011-7-11 19:48
Individual securities do not plot on the CML, entire portfolios plot on the CML. The same applies for the efficient frontier. The CML is a straight line because you can lend and borrow to create an optimal portfolio whereas you cannot on the efficient frontier.
Edited 1 time(s). Last edit at Friday, June 5, 2009 at 10:51AM by Chuckrox8.
