View Related Documents

Abstract

The work feasible portfolio is built into the work, that is, the k-dimensional Q column vector with components qi where qi q1 = \fracri2 1 - ri2 A - 1 q_1 = \frac{{r_i^2 }}{{1 - r_i^2 }}A^{ - 1}
, where:
ri = r(Ri ,RM ) \textand A = åi = 1k \fracri2 1 - ri2 r_i = r(R_i ,R_M ) {\text{and}} A = \sum\limits_{i = 1}^k {\frac{{r_i^2 }}{{1 - r_i^2 }}}
. It is indicated that if ri<rj, then qi<qj and, moreover, the qi=tib i 2 relation occurs between qi and bi estimators of parameters of characteristic line:
Ri = ai + bi RM + ei (i = 1,...,k)R_i = \alpha _i + \beta _i R_M + e_i (i = 1,...,k)
, where ti is a certain constant. The effective formulas for a profit rate and risk of the constructed feasible portfolio are given.

Fulltext Preview

Image of the first page of the fulltext document

Frequently asked questions General info on journals and books Send us your feedback Impressum Contact us

© Springer, Part of Springer Science+Business Media Privacy, Disclaimer, Terms & Conditions, and Copyright Info