Only when equilibrium is attained will the set of prices (and hence rates of return) be compatible with the planned portfolios of investors and the stocks of assets. The measurement of p* will be discussed shortly but suppose, provisionally, that an estimate has been obtained. Gucci Store Seattle Washington WA. From the observed prices (yields) of these index-linked bonds, it is possible to estimate real yield curves that express yields to maturity adjusted for future price level changes as a function of time to maturity. Gucci Hobo Fabric Handbag. The presence of se can be understood as a way of trying to capture the impact of time series variability in asset returns other than the return on the whole market (which is what the beta-coefficients are assumed to pick up) - i.e. se should reflect the idiosyncratic components of risk. Gucci Store Seattle Washington WA. While this strategy minimizes the variance it does not completely eradicate risk, because (a) the linear relationship between Ap and Af is not exact and (b) the value of h*, being obtained from a sample of data, is subject to statistical error. Gucci Outlet Stores Orlando. Thus, as explained above, the efficient portfolio comprising exclusively risky assets is the same for every investor - in figure 6.1 the point M depicts its expected rate of return, MM, and standard deviation of return, aM. Gucci Store Seattle Washington WA. However, in the presence of storage costs and convenience yields, the strategy is not entirely risk-free.