Abstract
This paper shows how to use interactive graphing via scroll bars to create a two-security portfolio frontier and the Capital Allocation Line. The frontier is enhanced via the use of spinners to control the correlation coefficient and the weight of risky assets as well as data labels that track the weight of the stocks along the frontier as a scroll bar is incremented. The VLOOKUP function is incorporated to lookup the calculated expected return and standard deviation of the risky portfolio at a stock weight controlled by a spinner. The purpose of this paper is to aid instructors in explaining the concepts of investment opportunity sets or frontiers, including the efficient and inefficient portions and riskless lending and borrowing to students of investing.
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