I'm writing some C code to create different portfolios using a few stocks that are given as inputs. I am having some trouble trying to find if these results are correct. My biggest hesitation is that the are no data points in the bottom right quadrant of the graph. I would expect that there be more points with lower return but higher standard deviation.
Some notes: The x axis is standard deviation (weekly) The y axis is return (weekly)
Obviously these stocks may not be the best combination in terms of covariance together. However the more stocks that I add to the portfolio the more of a cluster that it becomes.
So two questions:
Do these graphs look like reasonable graphs?
Why aren't there more points with a low return and high standard deviation?