The definition of the efficient frontier says that “the efficient frontier represents the set of portfolios that has the maximum rate of return for every given level of risk, or the minimum risk for every level of return.” I plotted standard deviation on x axes and Returns on y axes to interpret efficient frontier. Exhibits also include these and the graphs you asked for as graph2: In our study, we concentrated on the optimal portfolios, the one which has the lowest volatility or risk, for given level of return. The area below the frontier shows the achievable risk-return combinations, there will be at least one portfolio constructible that has the risk and return corresponding to that point. No portfolio on the efficient frontier can dominate any other portfolio on the efficient frontier. All of these portfolios have different return and risk measures, with expected rates of return that increase with higher risk. When we increased the expected return incrementally the weight of BBY and MRK increased until expected return is 2 ,MRK decreasing and BBY increasing afterwards ,whereas weight of WMT, C, IBM and HSY decreased respectively and became 0.Weight of HD is always 0 since it has a very low return/risk ratio compared to others. For the highest return of 2.5 BBY and MRK were optimal combinations since they are highly negatively correlated compared to others. Since BBY is on the efficient frontier, the decision to prefer it or other portfolios to each other depends on risk preference of individuals. The other individual securities are not efficient in these cases since they are on the area below the curve. The portfolios that are closest to the efficient frontier are more diversified since the portfolios on the efficient frontier are the most diversified. As you can see in exhibit 7 the minimum variances that you obtained by making up a portfolio of 7 securities are all below the individual standard deviations for the same level of expected return while they...

...Creating efficientfrontiers using excel.
Suppose we have 3 risky assets whose net return has the mean vector and variancecovariance matrix given below:
Asset Mean VarianceCovariance Matrix
1 2 3 0.06 0.12 0.03 1 0.3 0.3 0.3 1 0.3 0.3 0.3 1
Weights
Ones Mean Portfolio Return
1 1 1 0.176666122
Portfolio Portfolio Portfolio Variance STD Constraint
2.42961 1.558721 1
0.079372 1.603166 -0.68254
To model the portfolio choice problem, I begin by...

...Instructions for Efficient-Frontier Construction
a. Estimation
The goal is to obtain the raw ingredients – expected returns, standard deviations and correlations. Historical data are used for this purpose. As a rule of thumb, five years of daily data are probably right (one year should be the absolute minimum). Keep in mind the following: 1) make sure to use the adjusted close prices to calculate returns (so that you won’t have large, spurious negative...

...Name: GAO FAN
Student Number: 139030647
Programme Title: Analysis of the Efficient Market Hypothesis
Module Title: FOUNDATIONS OF FINANCIAL ANALYSIS AND INVESTMENT (MN7022)
Assignment Question: Critically review and discuss the concept of market efficiency and empirical approaches to test for it.
Words number: 2994
Analysis of the Efficient Market Hypothesis
INTRODUCTION
The study of “efficient...

...any foe he shall face due to the superior set of skills that he has acquired. James Fenimore Cooper’s text of “A Rescue” from The Deerslayer and The Last of the Mohicans, both the text and film versions, show all the characteristics of the American frontier hero in order to highlight what is, and was viewed as heroic in the United States.
Stereotypically every hero has a certain ability that sets them apart from the rest of the community. Natty Bumppo is a phenomenal shooter,...

...Discuss:
“The concept of efficient diversification implies that for an investor wishing to efficiently assume risk in their portfolio; the risky part of the portfolio should consist of weighted proportions of all possible risky assets.”
Abstract: Minimizing investor’s portfolio risk was a dominant goal influencing decision making of investment. The effective method of reducing risks was to efficient diversifying the portfolio. The author’s purpose in this...

...Case on Mean-Variance Frontiers
1. Ignoring the risk-free asset, draw the frontier in mean-std space.
We solve the problem by Matlab:
clear; clc;
% input data
temp = xlsread('30_Industry_Portfolios');
ret = temp(:,2:end)/100; （this step is to get all the returns from the file）
rf = 0.01/100; (The risk free rate is rf =0.01%= 0.0001 per month.)
% compute moments
er = (mean(ret))'; (the (30.1)vector of returns on the 30 industries)
V = cov(ret);...

...distribution' can be an asset for any business project.
I’m not sure how to put this in words but gives the business a picture of what the outcome could be both positive and negative outcomes.
3. Describe in at least two paragraphs the quantitative analysis approach, to include a high level overview of the importance of identifying the problem, developing a model, acquiring input data, developing a solution, testing the solution, analyzing results, and implementation....

...Cost Eﬃcient Gait Analysis Using Lasers
Isac Zia isac.zia@hotmail.com
under the direction of Prof. Hamed Hamid Muhammed School of Technology and Health KTH
Research Academy for Young Scientists July 11, 2012
Abstract Gait analysis is the methodic measurement, description and evaluation of factors that aﬀect human locomotion. It can be used for rehabilitation purposes, for optimizing sport results and lower risks of injury and as a...