Tangent portfolio is the portfolio where an efficient frontier intersects the capital market line. It is assumed to be the best portfolio that has the perfect balance of lowest risk and optimal returns. The capital market line draws the line of capital asset pricing model considering a range of portfolio returns. The efficient frontier is the line that gives the optimal portfolios at a given level of risk.
Any portfolio above the efficient frontier line is a high return portfolio but the risk is also higher than the given risk rate. So the point where both optimum returns line and CML touch each other is called the tangent portfolio.
Mexican Motors’ market cap is 200 billion pesos. Next year’s free
Lohn Corporation is expected to pay the following dividends over the next
Use the following income statement and balance sheet for Jim’s Espresso:
You are looking at an investment that has an effective
Bowdeen Manufacturing intends to issue callable, perpetual bonds with annual coupon
Why is it that real options must have positive value?
Shadow Corp. has no debt but can borrow at 8 percent
Hanmi Group, a consumer electronics conglomerate, is reviewing its annual
Schwert Corp. shows the following information on its 2012 income statement
Aguilera Acoustics, Inc. (AAI), projects unit sales for
