Sign up  |  Log in

Mackovic frontier line

in explantion of Mackovic frontier lines, each stock is given a Risk and Return. then, we can make a portfolio which has least risk and highest return.

but i do not know what is Risk in this context. pls, help me. Thanks.

"Wiley's prep material was a huge part of my success... really keeps me motivated and charging ahead." - Lindsey G., USA

I believe you mean Markowitz, not the football coach.

The risk is denoted by sigma (total risk).

https://www.youtube.com/watch?v=lPKtI90f_sE 

Vancouver, B.C.

"The society that separates its scholars from its warriors will have its thinking done by cowards and its fighting by fools." -Thucydides