Devry FIN 351 Week 7 Assignment

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Devry FIN 351 Week 7 Assignment

• Chapter 17 Discussion Question 4 pg. 456-In a two-asset portfolio, is the portfolio standard deviation a weighted average of the two individual stocks’ standard deviation? Explain.

• Chapter 17 Discussion Question 6 pg. 456-What are the two characteristics of points along the efficient frontier? Do portfolios exist above the efficient frontier?

• Chapter 17 Discussion Question 8 pg. 456-Describe the optimum portfolio for an investor in terms of indifference curves and the efficient frontier.



• Chapter 17 Discussion Question 10 pg. 456-In examining the capital market line as part of the capital asset pricing model, to increase portfolio return (KP) what other variable must you increase?

• Chapter 17 Discussion Question 12 pg. 456- What can be assumed in terms of volatility for a stock that has a beta of 1.2?

• Chapter 17 Discussion Question 13 pg. 456- What does the security market line indicate? In general terms, how is it different from the capital market line?