In the notes it says we can not be expected to use the two asset portfolio formula, but then under diversified portfolios you say we can only be asked to combine two investments in the exam, how do you combine 2 investments if you don’t use the formula?
I don’t think it says that, but if it does then ignore it (I am currently rewriting the notes anyway).
You cannot be asked any calculations on portfolio theory, but you are expected to know the theory which is why I have left the examples – I think it makes it clearer than simply talking about it. 🙂
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