       SHARPE'S METHOD OF PORTFOLIO SELECTION

tHIS PROGRAM STARTS WITH DATA PERTAINING TO A MARKET INDEX
AND SEVERAL POSSIBLE STOCKS TO HOLD. fOR EACH STOCK THE
USER INPUTS THE ALPHA AND BETA PARAMETERS ALONG WITH THE
VARIANCE OF RETURN(OR STANDARD DEVIATION OF RETURN=VOLATILITY).
FOR THE INDEX THE EXPECTED VALUE AND VARIANCE OF RETURN
ARE ENTERED. tHE PROGRAM THEN CALCULATES THE PROPORTION
A RISK FACTOR MAY ALSO BE INCLUDED. THIS FACTOR TAKES ON VALUES
BETWEEN 0 AND 4 OR 5. THE HIGHER THE RISK FACTOR THE MORE
DARING THE INVESTOR SHOULD BE. 0 MEANS VERY CONSERVATIVE.

PRESS ENTER TO BEGIN? 
NUMBER OF STOCKS BEING CONSIDRED FOR PORFOLIO? 2

ENTER 1 IF STOCK VARIANCE OF RETURN IS BEING ENTERED.
ENTER 0 IF STOCK STANDARD DEVIATION OF RETURN IS ENTERED? 0
ENTER STOCK 1  ALPHA,BETA,ST.DEV? 1,2,3
ENTER STOCK 2  ALPHA,BETA,ST.DEV? 4,5,6

INDEX RETURN? 7
INDEX VARIANCE OF RETURN? 8

ENTER RISK FACTOR ? 9
SOLUTION FOLLOWS 

PROPORTION FOR STOCK  1  =  .410256 
PROPORTION FOR STOCK  2  =  .589744 

PRESS ENTER FOR ANOTHER COMPUTATION? -1
