Question: 3. By constraining shortfall beta, one tends to lower the standard beta of the portfolio, since the two are strongly correlated. Is the outperformance of

3. By constraining shortfall beta, one tends to lower the standard beta of the portfolio, since the two are strongly correlated. Is the outperformance of shortfall constrained optimization for the findings reported in this chapter simply due to its lower beta, especially during the turbulent periods?

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