Question: Recalculate problem 13 for a portfolio manager who is not allowed to short- sell securities. a. What is the cost of the restriction in terms

Recalculate problem 13 for a portfolio manager who is not allowed to short- sell securities.

a. What is the cost of the restriction in terms of Sharpe’s measure?

b. What is the utility loss to the investor (A = 2.8) given his new complete portfolio?

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