Portfolio Management help

Hey guys,

I’m having a brain freeze on basic algebra (I’m many many years out of high school…) can someone please walk me through this from the CFIA EOC for port managment

E(Rp) = wE(RM) + (1-w)RF

17=13w +5(1-w) = 8w+5

12=8w

w= 1.5

I get the theory well enough, but the calc is confusing me. Thanks all, GG.

Money never sleeps GG but you need some zzzs. Get at it tomorrow and you’ll have no problem,

Money never sleeps GG but you need some zzzs. Get at it tomorrow and you’ll have no problem,

Is this just a basic algebra question?

17=13w +5(1-w)

expand out the right side to give

17=13w +5 -5w

sum up right side

17 = 8w+5

subtract 5 from both sides

12=8w

divide both sides by 8

w= 1.5

I sincerely hope that this is just a momentary brain lapse

Thanks, yes, I do remember this now. Feeling the effects of trying to cram the entire PM material into a single day…