> How to derive the minimum variance point?

How to derive the minimum variance point?

Posted at: 2014-12-05 
To find the point of minimum variance on the efficient frontier curve, how would you derive the formula? (For a two asset portfolio.)

The formula is in the HINT of the image uploaded.



Um, you would write the simple formula for the variance with p = proportion in asset A and (1-p) in asset B. Then you would take dV/dp and set = 0 and do the first semester high school calc thing...

To find the point of minimum variance on the efficient frontier curve, how would you derive the formula? (For a two asset portfolio.)

The formula is in the HINT of the image uploaded.