CHAPTER 4: MARKOWITZ DIVERSIFICATION

Topics:

4.1 OVERVIEW

4.2 THREE-FIRM CASE: PORTFOLIOS

4.3 INVESTMENT OPPORTUNITY SET

4.4 THE EFFICIENT FRONTIER

4.5 TWO-FIRM ANALYSIS

4.6 THE N-SECURITY CASE

4.7 THE MARKOWITZ PROBLEM WITH SHORT SALES

4.8 SOLUTION TO MARKOWITZ PROBLEM WITH SHORT SALES

4.9 THREE-FIRM CASE: APPLICATION OF MEAN VARIANCE THEORY

4.10 THE SHAPE OF THE FRONTIER

4.11 CHAPTER 4: EXERCISES