Mean-Variance Analysis quantifies the notions of risk and expected return by applying concepts from statistics. The values of assets are taken to be random variables with various expected values
This application studies the case with one risky asset and one risk-free asset. The goal is to provide intuitive answers to three questions.
The analysis is conducted within the framework of a diagram of risk vs. expected return.
Classic Economic Models
Overview of Macro Models
Overview of Micro Models