Efficient Frontier

16.00%

14.00%
Exp. Return

12.00%

10.00%

8.00%

6.00%

4.00%

2.00%

0.00%
4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 20.00%
St. Deviation
 Stock A Stock B
Average Return 15.00% 12.00%
St. Deviation of Returns 18.00% 6.00%
Correlation Coeff. 0

Proportion Proportion Expected Standard

in A in B Return Deviation
100.00% 0.00% 15.00% 18.00%
95.00% 5.00% 14.85% 17.10%
90.00% 10.00% 14.70% 16.21%
85.00% 15.00% 14.55% 15.33%
80.00% 20.00% 14.40% 14.45%
75.00% 25.00% 14.25% 13.58%
70.00% 30.00% 14.10% 12.73%
65.00% 35.00% 13.95% 11.89%
60.00% 40.00% 13.80% 11.06%
55.00% 45.00% 13.65% 10.26%
50.00% 50.00% 13.50% 9.49%
45.00% 55.00% 13.35% 8.75%
40.00% 60.00% 13.20% 8.05%
35.00% 65.00% 13.05% 7.41%
30.00% 70.00% 12.90% 6.84%
25.00% 75.00% 12.75% 6.36%
20.00% 80.00% 12.60% 6.00%
15.00% 85.00% 12.45% 5.77%
10.00% 90.00% 12.30% 5.69%
5.00% 95.00% 12.15% 5.77%
0.00% 100.00% 12.00% 6.00%