FVPV

Thanks guys, this helps a lot - especially kia, you obviously have it down solid.

Just had a quick question - when you talk about the the Markowitz Frontier and how you're looking for the straight line thats tangent between the RF rate and the frontier, is this the same as the CAL line? I think the one thing I have trouble understanding is which lines you plot against which charts to find the "optimal portfolio". In particular, I've seen the term optimal portfolio come up twice:

1) The line tangent to the Markowitz frontier connecting to the RF rate
2) The point tangent to the investors highest indifference curve on the CAL/CML.

Whats the difference between these two "optimal portfolios"? I know I'm missing something very basic here.....