标题: cracking true or false question [打印本页] 作者: clearlycanadian 时间: 2013-4-1 12:39 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: tikfed 时间: 2013-4-1 12:39
Thats what I thought..
BUT….wont an individual security that offers the HIGHEST possible return plot on the efficient frontier?作者: tikfed 时间: 2013-4-1 12:39
hmmmm, can’t give a precise answer…individual securities are inefficient “portfolios” that’s the way i see it作者: Iginla2010 时间: 2013-4-1 12:39
but the efficient frontier’s ‘end points’ have to be the assets offering the lowest and highest returns…
I need to STOP!!作者: Analti_Calte 时间: 2013-4-1 12:39
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: therecruit 时间: 2013-4-1 12:39
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.
