February 24, 2004
Mean-Variance Analysis
We put the past couple of lectures together to develop mean-variance analysis. The budget constraint comes from the "aX+b" rules. The indifference curves comes from the fourth panel of the handout.
Different agents might well have different indifference curves and, hence, different optimal portfolios.
Changing information about the available securities will lead to portfolio adjustments and trading.
Posted by bparke at 11:09 PM