Chapter 5 - Modern Portfolio Theory
89 Where beta=0.5 towards the bottom of the page
 
50%
 
Risk free:
Index Fund:
Portfolio:
$500,000.
$500,000.
$1,000,000.
@3.2%
@11.2%
 
=
=
 
$516,000.
$556,000.
$1,072,000.
 

89 Where beta=2 at the bottom of the page
 
200%
 
Risk free:
Index Fund:
Portfolio:
-$1,000,000.
$2,000,000.
$1,000,000.
@3.2%
@11.2%
 
=
=
 
- $1,032,000.
$2,224,000.
$1,192,000.
 

92 The Coefficient of Variation should be given as:
  1     =     Rp  
CV   σp