An Algebraic Theory of Portfolio Allocation August 2001 by David A. Hennessy Harvey E. Lapan Professor University Professor Department of Economics Department of Economics Iowa State University Iowa State University Ames, IA 50011-1070 Ames, IA 50011-1070 Mailing address for correspondence David A. Hennessy Department of Economics 478 B Heady Hall Iowa State University Ames, IA 50011-1070 Ph: (515) 294-6171 Fax: (515) 294-0221 e-mail: hennessy@iastate.edu