# Question

Assume that the data below apply to two efficient portfolios. What is the efficient frontier? Assume the standard definition of short sales.

## Answer to relevant Questions

Monthly return data are presented below for each of three stocks and the S&P index (corrected for dividends) for a 12-month period. Calculate the following quantities: - Alpha for each stock - Beta for each stock - The ...Using the data in Problem 5 and assuming an equally weighted portfolio, calculate the following: Assuming Is are uncorrelated and Calculate the following using the general multi-index model: - Expected returns - Variance of return - Covariance of return What is the optimum portfolio assuming short sales if RF = 5% and p = 0.5? Use the data in Problem 4. In Problem 4 If RL equals 10%, what is the preferred investment shown in Problem 1 using Kataoka’s safety-first criterion? In Problem 1Post your question

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