Portfolios that plot inside the minimum-variance frontier represent efficient po
ID: 2736437 • Letter: P
Question
Portfolios that plot inside the minimum-variance frontier represent
efficient portfolios( had was wrong)
inefficient portfolios.
unattainable portfolios
2.
What are the arithmetic and geometric average returns for a stock with annual returns of 4%, 9%, -6%, and 18%?
6.25%; 5.89%
6.25%; 8.33% ( Had this wrong)
8.3%; 5.89%
efficient portfolios( had was wrong)
inefficient portfolios.
unattainable portfolios
2.
What are the arithmetic and geometric average returns for a stock with annual returns of 4%, 9%, -6%, and 18%?
6.25%; 5.89%
6.25%; 8.33% ( Had this wrong)
8.3%; 5.89%
Explanation / Answer
1. Inefficient portfoli
2. 6.25%, 5.89%
A.M = 4+9-6+18/4
= 6.25%
G.M = 4th root of (4*9*6*18)
= 5.89%