I'm trying to understand what this portfolio standard deviation equation means in the slide screenshot as marked. If someone could help me explain how this equation works, that would be great.
When I read it, I read that standard deviation = (r- rf)/(r1 - rf) however I have no understanding on what the pipe symbols mean (do they mean absolute) or what theta(return1) means after the last pipe symbol.
The pipe symbol is absolute value. The slide, however, is gibberish.