Mathematics, 18.06.2021 02:30, ritaraum1802
Suppose that it is impractical to use all the assets that are incorporated into a specified portfolio (such as a given efficient portfolio). One alternative is to find the portfolio, made up of a given set of n stocks, that tracks the specified portfolio most closelyâin the sense of minimizing the variance of the different returns. Specifically, suppose that the target portfolio has (random) rate of return rM. Suppose that there are n assets with (random) rates of return r1, r2, ⊠rn. We wish to find the portfolio rate of return: r = α1r1+ α2r2 + ⊠+ αnrn (with â_(i=1)^nâαI = 1) minimizing var(r - rM) Find a set of equations for the αnâs Although this portfolio tracks the desired portfolio most closely in terms of variance, it may sacrifice the mean. Hence a logical approach is to minimize the variance of the tracking error subject to achieving a given mean return. As the mean is varied, this results in a family of portfolios that are efficient in a new sense, say tracking efficient. Find the equations of the αiâsthat are tracking efficient.
Answers: 2
Mathematics, 21.06.2019 16:20, PONBallfordM89
Abby is preparing fruit punch for her party. she starts with a bowl filled with liquid that has 1/2 fruit juice and 1/2 sprite, but she decides it's too fruity. so she pours out 1/4 of the liquid, and then fills the bowl up again with sprite. what fraction of the punch is now sprite?
Answers: 1
Mathematics, 21.06.2019 19:30, autumnplunkett09
Runner ran 1 4/5 miles on monday and 6 3/10 on tuesday. how many times her mondayâs distance was her tuesdays distance
Answers: 1
Mathematics, 22.06.2019 01:00, Bryson2148
Find the rate of change for the situation. you run 7 miles in one hour and 21 miles in three hours.
Answers: 1
Suppose that it is impractical to use all the assets that are incorporated into a specified portfoli...
Mathematics, 30.07.2019 08:30
Mathematics, 30.07.2019 08:30
Geography, 30.07.2019 08:30
Mathematics, 30.07.2019 08:30
History, 30.07.2019 08:30