The Internet Investments Online

Several sites that we discussed in earlier chapters contained financial calculators. By inputting the required data, users can determine if it is better to buy or lease a car, calculate returns, and determine how much money they will have if funds are invested at a certain rate of return over time. The sites listed all contain financial calculators that may be of use to investors and financial planners. http www.financenter.com http www.jamesko.com FinCalc http www.numeraire.com Summary As an...

1. Draw A Properly Labeled Graph Of The Markowitz Efficient Frontier. Describe The Efficient Frontier In Exact Terms.

Why do most investors hold diversified portfolios 2. What is covariance, and why is it important in portfolio theory 3. Why do most assets of the same type show positive covariances of returns with each other Would you expect positive covariances of returns between different types of assets such as returns on Treasury bills, General Electric common stock, and commercial real estate Why or why not 4. What is the relationship between covariance and the correlation coefficient 5....