Today I lectured from Section ¡­

Today I lectured from Section 2.4. Two approaches were outlined for solving the mean-variance portfolio optimization problem. 1) Direct approach through a quadratic programming problem. 2) Risk-neutral probabilities approach / Lagrange multiplier method. Both approaches were illustrated on a concrete example from the book.

Tuesday next week, I will continue with the lectures (no exercises).

The obligatory assignment will be made available here on this website on Monday (00:00-->).