How is sharpe's model and improvement over markowitz model?
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The Sharpe’s model generated series of “corner portfolios” along the efficient frontier. The corner portfolios can be calculated either when a security enters or leaves portfolio. The number of stocks increases until it reaches the corner portfolio. The corner portfolio provides the minimum risk of the lowest return. Figure 16.3 shows the regression equation and Figure 16.4 depicts frontier connecting the corner portfolio.
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