Abstract
There are two risky assets, k = 1, 2 and one risk-free asset with return of 2%. Risky assets cannot be short sold. The expected returns of the risky assets are μ 1 := 5% and μ 2 := 7.5%. The covariance matrix is:
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2019 Springer-Verlag GmbH Germany, part of Springer Nature
About this chapter
Cite this chapter
Hens, T., Rieger, M.O. (2019). 3 Two-Period Model: Mean-Variance Approach. In: Solutions to Financial Economics. Springer Texts in Business and Economics. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-59889-4_3
Download citation
DOI: https://doi.org/10.1007/978-3-662-59889-4_3
Published:
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-662-59887-0
Online ISBN: 978-3-662-59889-4
eBook Packages: Economics and FinanceEconomics and Finance (R0)