Hi, I am not clear how the values have been used to calculate mean variance portfolios. I understand the combinations involving risk free portfolios have not been considered since that we will result in no holdings for another asset and full holding for risk free asset and since we have been asked for pair we have ignored them. However, for the pairs we are proceeding to calculate, the calculation does not make sense to me . Please explain how the values have been used to put in formulae. Thanks
Hi Ayushi You appear to be using an old edition of the Course Notes (i.e. not the 2022 edition). Practice question 18.3 was removed in 2021, as the mathematical detail (presented in Subject CM2) was then removed from the SP5 Core Reading. The 2021 Upgrade document (attached) identified these changes. Best wishes David
