Question: Describe the goals of an index fund Discuss the contention
Describe the goals of an index fund. Discuss the contention that index funds are the ultimate answer in a world with efficient capital markets.
Answer to relevant QuestionsAt a social gathering, you meet the portfolio manager for the trust department of a local bank. He confides to you that he has been following the recommendations of the department's six analysts for an extended period and ...Compare the abnormal returns in Problems 1 and 2 and discuss the reason for the difference in each case.Assume you want to run a computer program to derive the efficient frontier for your feasible set of stocks. What information must you input to the program?The following are the monthly rates of return for Madison Cookies and for Sophie Electric during a six-month period.Compute the following.a. Average monthly rate of return Ri for each stockb. Standard deviation of returns ...What changes would you expect in the standard deviation for a portfolio of between 4 and 10 stocks, between 10 and 20 stocks, and between 50 and 100 stocks?
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