标题: 2 asset portfolio - which formula? [打印本页] 作者: MeteorShower 时间: 2011-7-13 13:49 标题: 2 asset portfolio - which formula?
Hey guys
The portfolio management study session introduces another formula for working out the variance of a two asset portfolio.
Qp = w2q2 +w2q2 + 2w1w1q1q2P1,2
Qp = w2q2+w2q2+2w1w2Cov1,2
My question is which formula do you use for the exam? As you will notice one uses sd's in the latter part of the formula so both methods will give conflicting answers.作者: burnsy562000 时间: 2011-7-13 13:49
the two formulas you will see for Q are the same
one takes the cov as input
and one takes the corrolation as input
given that covar=corrolation * q1 *q2
they are the same作者: hariRaj 时间: 2011-7-13 13:49
omg cant believe i didnt recognise that. so stupid. thanks alot ahmad!作者: FVPV 时间: 2011-7-13 13:49
