Investments, tenth edition

 4.8 

Information on Mutual Funds  110

End of Chapter Material  112–116

PART II

Portfolio Theory 

and Practice  117

CHAPTER 5

Risk, Return, and the Historical Record  117

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Contents

x

Appendix B: Utility Functions and Equilibrium Prices 

of Insurance Contracts  203

Appendix C: The Kelly Criterion  203

CHAPTER 7

Optimal Risky Portfolios  205

 7.1 

Diversification and Portfolio Risk  206

 7.2 

Portfolios of Two Risky Assets  208

 7.3 

Asset Allocation with Stocks, Bonds, and Bills  215

Asset Allocation with Two Risky Asset Classes

 7.4 

The Markowitz Portfolio Optimization Model  220

Security Selection / Capital Allocation and the Separation 

Property / The Power of Diversification / Asset Allocation 

and Security Selection / Optimal Portfolios and 

Nonnormal Returns