Investment Research, Modern Portfolio Theory, Linear Algebra, Mba.
problem with assets denoted A, B and C. Let Ri = (i= A, B, C) denote the return on asset i and assume that the constant expected return (CER) model holds: Let 1 represent the total wealth available for investment while xi denote portion of wealth invested in asset i (i =A, B, C where xA + xB + xC =