Let us consider two assets A and B with the following details: Mean Standard Deviation Correlation A B We have a total of $10 million to invest. Our objective is to reach a target return of $5 million. Let us look at the following three options and find out the probability of reaching our target […]
The concept of Efficient Frontier was first introduced by Harry Markowitz in his paper on Portfolio Selection (1952 Journal of Finance). The portfolio theory considers a universe of risky investments and explores these possible investments in order to find the optimum portfolio. So, for a given amount of risk, MTP explains how select a portfolio […]
In the recent years, Exchange Traded Funds (ETFs) have become quite popular and many different products in this category have entered in the market.