![Page 1: Table 11-1 Geometric Mean Returns Elton, Gruber, Brown, and Goetzman: Modern Portfolio Theory and Investment Analysis, Sixth Edition © John Wiley & Sons,](https://reader035.vdocuments.us/reader035/viewer/2022062805/5697bff81a28abf838cbf3d6/html5/thumbnails/1.jpg)
Table 11-1 Geometric Mean Returns
Elton, Gruber, Brown, and Goetzman: Modern Portfolio Theory and Investment Analysis, Sixth Edition © John Wiley & Sons, Inc.
![Page 2: Table 11-1 Geometric Mean Returns Elton, Gruber, Brown, and Goetzman: Modern Portfolio Theory and Investment Analysis, Sixth Edition © John Wiley & Sons,](https://reader035.vdocuments.us/reader035/viewer/2022062805/5697bff81a28abf838cbf3d6/html5/thumbnails/2.jpg)
Table 11-2 Means Returns, Standard Deviations, and Lower Limits
Elton, Gruber, Brown, and Goetzman: Modern Portfolio Theory and Investment Analysis, Sixth Edition © John Wiley & Sons, Inc.
![Page 3: Table 11-1 Geometric Mean Returns Elton, Gruber, Brown, and Goetzman: Modern Portfolio Theory and Investment Analysis, Sixth Edition © John Wiley & Sons,](https://reader035.vdocuments.us/reader035/viewer/2022062805/5697bff81a28abf838cbf3d6/html5/thumbnails/3.jpg)
FIGURE 11-1 Lines of constant preference—Roy’s criterion.
Elton, Gruber, Brown, and Goetzman: Modern Portfolio Theory and Investment Analysis, Sixth Edition © John Wiley & Sons, Inc.
![Page 4: Table 11-1 Geometric Mean Returns Elton, Gruber, Brown, and Goetzman: Modern Portfolio Theory and Investment Analysis, Sixth Edition © John Wiley & Sons,](https://reader035.vdocuments.us/reader035/viewer/2022062805/5697bff81a28abf838cbf3d6/html5/thumbnails/4.jpg)
FIGURE 11-2 The portfolio choice problem with Kataoka’s safety first rule.
Elton, Gruber, Brown, and Goetzman: Modern Portfolio Theory and Investment Analysis, Sixth Edition © John Wiley & Sons, Inc.
![Page 5: Table 11-1 Geometric Mean Returns Elton, Gruber, Brown, and Goetzman: Modern Portfolio Theory and Investment Analysis, Sixth Edition © John Wiley & Sons,](https://reader035.vdocuments.us/reader035/viewer/2022062805/5697bff81a28abf838cbf3d6/html5/thumbnails/5.jpg)
FIGURE 11-3 The investor’s choice problem—Telser’s criterion.
Elton, Gruber, Brown, and Goetzman: Modern Portfolio Theory and Investment Analysis, Sixth Edition © John Wiley & Sons, Inc.
![Page 6: Table 11-1 Geometric Mean Returns Elton, Gruber, Brown, and Goetzman: Modern Portfolio Theory and Investment Analysis, Sixth Edition © John Wiley & Sons,](https://reader035.vdocuments.us/reader035/viewer/2022062805/5697bff81a28abf838cbf3d6/html5/thumbnails/6.jpg)
FIGURE 11-4 No feasible portfolio—Telser’s criterion.
Elton, Gruber, Brown, and Goetzman: Modern Portfolio Theory and Investment Analysis, Sixth Edition © John Wiley & Sons, Inc.
![Page 7: Table 11-1 Geometric Mean Returns Elton, Gruber, Brown, and Goetzman: Modern Portfolio Theory and Investment Analysis, Sixth Edition © John Wiley & Sons,](https://reader035.vdocuments.us/reader035/viewer/2022062805/5697bff81a28abf838cbf3d6/html5/thumbnails/7.jpg)
Table 11-3 Outcomes Associated with Alternative Market Conditions
Elton, Gruber, Brown, and Goetzman: Modern Portfolio Theory and Investment Analysis, Sixth Edition © John Wiley & Sons, Inc.
![Page 8: Table 11-1 Geometric Mean Returns Elton, Gruber, Brown, and Goetzman: Modern Portfolio Theory and Investment Analysis, Sixth Edition © John Wiley & Sons,](https://reader035.vdocuments.us/reader035/viewer/2022062805/5697bff81a28abf838cbf3d6/html5/thumbnails/8.jpg)
Table 11-4 Two Investment Alternatives; Outcomes and Associated Probabilities
Elton, Gruber, Brown, and Goetzman: Modern Portfolio Theory and Investment Analysis, Sixth Edition © John Wiley & Sons, Inc.
![Page 9: Table 11-1 Geometric Mean Returns Elton, Gruber, Brown, and Goetzman: Modern Portfolio Theory and Investment Analysis, Sixth Edition © John Wiley & Sons,](https://reader035.vdocuments.us/reader035/viewer/2022062805/5697bff81a28abf838cbf3d6/html5/thumbnails/9.jpg)
Table 11-5 A Cumulative Probability Distribution
Elton, Gruber, Brown, and Goetzman: Modern Portfolio Theory and Investment Analysis, Sixth Edition © John Wiley & Sons, Inc.
![Page 10: Table 11-1 Geometric Mean Returns Elton, Gruber, Brown, and Goetzman: Modern Portfolio Theory and Investment Analysis, Sixth Edition © John Wiley & Sons,](https://reader035.vdocuments.us/reader035/viewer/2022062805/5697bff81a28abf838cbf3d6/html5/thumbnails/10.jpg)
FIGURE 11-5 Cumulative frequency function for gambles A and B.
Elton, Gruber, Brown, and Goetzman: Modern Portfolio Theory and Investment Analysis, Sixth Edition © John Wiley & Sons, Inc.
![Page 11: Table 11-1 Geometric Mean Returns Elton, Gruber, Brown, and Goetzman: Modern Portfolio Theory and Investment Analysis, Sixth Edition © John Wiley & Sons,](https://reader035.vdocuments.us/reader035/viewer/2022062805/5697bff81a28abf838cbf3d6/html5/thumbnails/11.jpg)
Table 11-6 Two investment Alternatives: Outcomes and Associated Probabilities
Elton, Gruber, Brown, and Goetzman: Modern Portfolio Theory and Investment Analysis, Sixth Edition © John Wiley & Sons, Inc.
![Page 12: Table 11-1 Geometric Mean Returns Elton, Gruber, Brown, and Goetzman: Modern Portfolio Theory and Investment Analysis, Sixth Edition © John Wiley & Sons,](https://reader035.vdocuments.us/reader035/viewer/2022062805/5697bff81a28abf838cbf3d6/html5/thumbnails/12.jpg)
Table 11-7 The sum of the Cumulative Probability Distribution
Elton, Gruber, Brown, and Goetzman: Modern Portfolio Theory and Investment Analysis, Sixth Edition © John Wiley & Sons, Inc.
![Page 13: Table 11-1 Geometric Mean Returns Elton, Gruber, Brown, and Goetzman: Modern Portfolio Theory and Investment Analysis, Sixth Edition © John Wiley & Sons,](https://reader035.vdocuments.us/reader035/viewer/2022062805/5697bff81a28abf838cbf3d6/html5/thumbnails/13.jpg)
FIGURE 11-6 The choice between investments A and B.
Elton, Gruber, Brown, and Goetzman: Modern Portfolio Theory and Investment Analysis, Sixth Edition © John Wiley & Sons, Inc.
![Page 14: Table 11-1 Geometric Mean Returns Elton, Gruber, Brown, and Goetzman: Modern Portfolio Theory and Investment Analysis, Sixth Edition © John Wiley & Sons,](https://reader035.vdocuments.us/reader035/viewer/2022062805/5697bff81a28abf838cbf3d6/html5/thumbnails/14.jpg)
FIGURE 11-7 Portfolios having first-order stochastic dominance.
Elton, Gruber, Brown, and Goetzman: Modern Portfolio Theory and Investment Analysis, Sixth Edition © John Wiley & Sons, Inc.
![Page 15: Table 11-1 Geometric Mean Returns Elton, Gruber, Brown, and Goetzman: Modern Portfolio Theory and Investment Analysis, Sixth Edition © John Wiley & Sons,](https://reader035.vdocuments.us/reader035/viewer/2022062805/5697bff81a28abf838cbf3d6/html5/thumbnails/15.jpg)
FIGURE 11-8 Sum of cumulative probabilities for two investments.
Elton, Gruber, Brown, and Goetzman: Modern Portfolio Theory and Investment Analysis, Sixth Edition © John Wiley & Sons, Inc.
![Page 16: Table 11-1 Geometric Mean Returns Elton, Gruber, Brown, and Goetzman: Modern Portfolio Theory and Investment Analysis, Sixth Edition © John Wiley & Sons,](https://reader035.vdocuments.us/reader035/viewer/2022062805/5697bff81a28abf838cbf3d6/html5/thumbnails/16.jpg)
FIGURE 11-9 The log-normal distribution.
Elton, Gruber, Brown, and Goetzman: Modern Portfolio Theory and Investment Analysis, Sixth Edition © John Wiley & Sons, Inc.
![Page 17: Table 11-1 Geometric Mean Returns Elton, Gruber, Brown, and Goetzman: Modern Portfolio Theory and Investment Analysis, Sixth Edition © John Wiley & Sons,](https://reader035.vdocuments.us/reader035/viewer/2022062805/5697bff81a28abf838cbf3d6/html5/thumbnails/17.jpg)
FIGURE 11-10 Investment alternatives leading to 100% investment in the riskless asset.
Elton, Gruber, Brown, and Goetzman: Modern Portfolio Theory and Investment Analysis, Sixth Edition © John Wiley & Sons, Inc.
![Page 18: Table 11-1 Geometric Mean Returns Elton, Gruber, Brown, and Goetzman: Modern Portfolio Theory and Investment Analysis, Sixth Edition © John Wiley & Sons,](https://reader035.vdocuments.us/reader035/viewer/2022062805/5697bff81a28abf838cbf3d6/html5/thumbnails/18.jpg)
FIGURE 11-11 Investment alternatives leading to infinite borrowing.
Elton, Gruber, Brown, and Goetzman: Modern Portfolio Theory and Investment Analysis, Sixth Edition © John Wiley & Sons, Inc.
![Page 19: Table 11-1 Geometric Mean Returns Elton, Gruber, Brown, and Goetzman: Modern Portfolio Theory and Investment Analysis, Sixth Edition © John Wiley & Sons,](https://reader035.vdocuments.us/reader035/viewer/2022062805/5697bff81a28abf838cbf3d6/html5/thumbnails/19.jpg)
FIGURE 11-12 Investment alternatives leading to 100% investment in riskless asset.
Elton, Gruber, Brown, and Goetzman: Modern Portfolio Theory and Investment Analysis, Sixth Edition © John Wiley & Sons, Inc.
![Page 20: Table 11-1 Geometric Mean Returns Elton, Gruber, Brown, and Goetzman: Modern Portfolio Theory and Investment Analysis, Sixth Edition © John Wiley & Sons,](https://reader035.vdocuments.us/reader035/viewer/2022062805/5697bff81a28abf838cbf3d6/html5/thumbnails/20.jpg)
FIGURE 11-13 Investment alternatives leading to infinite borrowing.
Elton, Gruber, Brown, and Goetzman: Modern Portfolio Theory and Investment Analysis, Sixth Edition © John Wiley & Sons, Inc.
![Page 21: Table 11-1 Geometric Mean Returns Elton, Gruber, Brown, and Goetzman: Modern Portfolio Theory and Investment Analysis, Sixth Edition © John Wiley & Sons,](https://reader035.vdocuments.us/reader035/viewer/2022062805/5697bff81a28abf838cbf3d6/html5/thumbnails/21.jpg)
FIGURE 11-14 Investment alternatives where a mixed policy is optimum.
Elton, Gruber, Brown, and Goetzman: Modern Portfolio Theory and Investment Analysis, Sixth Edition © John Wiley & Sons, Inc.
![Page 22: Table 11-1 Geometric Mean Returns Elton, Gruber, Brown, and Goetzman: Modern Portfolio Theory and Investment Analysis, Sixth Edition © John Wiley & Sons,](https://reader035.vdocuments.us/reader035/viewer/2022062805/5697bff81a28abf838cbf3d6/html5/thumbnails/22.jpg)
FIGURE 11-15 Investment alternatives leading to infinite borrowing.
Elton, Gruber, Brown, and Goetzman: Modern Portfolio Theory and Investment Analysis, Sixth Edition © John Wiley & Sons, Inc.