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4 Cards in this Set
- Front
- Back
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Efficient Frontier |
Portfolios that maximize expected returns for any given level of volatility |
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Security Market Line |
(SML) The line plotted for the equilibrium expected returns of all securities. |
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Capital Market Line |
(CML) Under the assumption of homogeneous expectations, the line connecting the market portfolio to the risk-free rate, which quantifies the relationship between the expected return and standard deviation for portfolios consisting of the risk-free asset and the market portfolio. |
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Variance of a Portfolio for 2 Securities (formula) |
MEMORIZE! |
