Question
Instead of computing the optimal allocations analytically, let's conduct an experiment. Generate above 700 random allocation sets: 4x1 vectors. Those will not be optimal
Instead of computing the optimal allocations analytically, let's conduct an experiment. Generate above 700 random allocation sets: 4x1 vectors. Those will not be optimal and can be negative. Standardise each set to satisfy w'1 = 1. In fact, generate 3 allocations and compute the 4th. . For each set, compute n = w'u and on = w'Ew. 1 . Plot the cloud of points, un vertically on n horizontally. Explain this plot. Hint: use the investment universe settings above, but the task is not optimisation, and no other formulae involved. Compute only what is asked in the question.
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Spreadsheet Modeling And Decision Analysis A Practical Introduction To Management Science
Authors: Cliff T. Ragsdale
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324656645, 324656637, 9780324656640, 978-0324656633
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