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Hi,

I am trying to get a feel of the fact that the Minimum Variance of a Portfolio = First Partial Derivative of the Standard Deviation of the Portfolio set to zero. Can anyone explain why we are doing that in order to derive the Minimum Variance of a Portfolio formula..?

I did notice that point of Minimum Variance is the point where the slope of the tangent =0. What is the first partial derivative wrt to..? What is the X..? in the dX...?

*In reference to R7.P1.T1.Elton_Topic: Minimum_Variance_Portfolio:*I am trying to get a feel of the fact that the Minimum Variance of a Portfolio = First Partial Derivative of the Standard Deviation of the Portfolio set to zero. Can anyone explain why we are doing that in order to derive the Minimum Variance of a Portfolio formula..?

I did notice that point of Minimum Variance is the point where the slope of the tangent =0. What is the first partial derivative wrt to..? What is the X..? in the dX...?

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