Describe the general goal of behavioral finance.
Answer to relevant QuestionsWhat does the EMH imply for the use of technical analysis?Describe the goals of an index fund. Discuss the contention that index funds are the ultimate answer in a world with efficient capital markets.Why do most investors hold diversified portfolios?Explain how a given investor chooses an optimal portfolio. Will this choice always be a diversified portfolio, or could it be a single asset? Explain your answer.Given: E(R1) = 0:12E(R2) = 0:16E(σ1) = 0:04E(σ2) = 0:06Calculate the expected returns and expected standard deviations of a two-stock portfolio having a correlation coefficient of 0.70 under the following conditions.a. w1 ...
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