The stock market line is a straight line in the coordinate system with Ep as the ordinate and βp as the abscissa, and its equation is: ei = ri+β I (EM-RI). Among them, e and β represent the expected return and β coefficient of securities or portfolio respectively, and the securities market line shows that there is a linear relationship between the expected return of securities or portfolio and the risk measured by β coefficient.

"turnover rate", also known as "turnover rate", refers to the turnover frequency of stocks in the market in a certain period of time and is one of the indicators reflecting the strength of stock liquidity. Its calculation formula is:

Turnover rate (turnover rate) = (turnover in a certain period of time)/(total asset allocation of circulating stocks-capital allocation line)

Cross-risk and risk-free portfolio asset allocation;

Capital distribution line

Represents all risk-return combinations (changed risk-asset ratio) when asset allocation changes.

Risk-free assets: such as bank deposits, national debt, money market funds, etc.

Risk assets: such as stock funds and bond funds. There are profits and losses.

The standard deviation represents the change of reward and risk.

Risk-free interest rate:%

Return on risk assets:%

Standard deviation of risky assets:%

Risk asset ratio:

Expected return of portfolio% risk premium% standard deviation% ratio of return to variability

Risk-free assets 7 0 0

Risk assets 15 8 22 0.364

Overall combination114110.364

Calculation formula:

Expected rate of return of the overall portfolio = expected rate of return of risk-free assets *( 1- ratio of risk assets)

+Expected rate of return on risky assets * Ratio of risky assets

Risk premium = return on investment-risk-free interest rate

Risk-free rate of return: the return on investment of risk-free assets.

Risk premium: the difference between the return on investment and the risk-free interest rate.

Ratio of return to variability = risk premium/standard deviation

Ratio of return to variability: additional return for each additional risk unit.

)x 100%