Risk-Return Analysis, Volume 2: The Theory and Practice of Rational Investing

ADDENDUM TO VOLUME I

On Page 45 of Volume I, copy reads as follows:

. . . , if two utility functions U and V are related linearly,

V = a + bU

b > 0

(11)

the probability distribution that maximizes EU also maximizes expected variance (EV).

Copy should read as follows:

. . . , if two utility functions U and V are related linearly,

V = a + bU

b > 0

(11)

The probability distribution that maximizes EU also maximizes EV.

The “expected variance” error was mistakenly inserted during the editing process. I regret that I did not catch it in the proofs.