1). Please explain what is a zero beta model and how is it different from the CAPM....

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1). Please explain what is a zero beta model and how is it different from the CAPM.

2). What does Skewness measure? why do we need this indicator? Which fund would be most attractive to investors, please explain why?

Funds	Skewness
Fund 1	-0.1894798
Fund 2	-0.2775975
Fund 3	-0.4715127
Fund 4	0.4547652
Fund 5	0.3260687
Fund 6	0.5483733
Fund 7	-0.1494167
Fund 8	0.1548212
Fund 9	0.0160796

Related Book For answer-question

Financial Accounting Tools for business decision making

ISBN: 978-0470534779

6th Edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

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Posted Date: Jan 18, 2023 11:25 PM

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1). Please explain what is a zero beta model and how is it different from the CAPM....

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Expert Answer:

A zero beta model is a portfolio optimization approach that aims to achieve a portfolio with a beta ... View the full answer

Financial Accounting Tools for business decision making

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