• Profile photo of John Moffat says

      Yes it is possible. The example is simply to show that is is possible to mix two investments and end up with lower risk than either (but that is not always going to be the case :-) )

      Do remember that you can not be asked portfolio calculations – you can only be asked to explain the principles. I only go through the examples to (hopefully) make the idea more clear.

    • Profile photo of John Moffat says

      If you read the last paragraph of the introduction to the chapter in the Course Notes, I make it clear that you are now only expected to know the principles involved and will not be required to use the formulae.
      As I explain in the note, I have left the examples in the notes just to help make the principles clear.

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