Efficient Frontier & Tangency

FIN 30600 · Investment Theory — Topic 3 §5 · Notre Dame

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Asset

Correlations (edit upper triangle)

Correlations are inconsistent (matrix not positive definite) — adjust the highlighted values.

Random cloud

~2,000 long-only portfolios, seeded for reproducibility.

No tangency portfolio exists here: the risk-free rate is at or above the global-MVP expected return, so no line from (0, r_f) is tangent to the efficient branch. Lower r_f (or raise the asset means) to bring the tangency back.

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Tangency portfolio weights

← All FIN 30600 tools Hover the frontier to read a portfolio's weights.