The same minimum variance frontier

Reference no: EM13333995

Consider Portfolios that are comprised from 10 stocks and lie on the same minimum variance frontier. Assume that any portfolio on this frontier has a short position in at least one stock. Sketch this frontier. Now assume that short selling is not allowed (this is a commitment of some mutual funds) and draw a corresponding minimum variance frontier on the same graph. Explain the difference (if any) between the two frontiers.

Reference no: EM13333995

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