Assume you have $600,000 to invest. Show a portfolio allocation (in percentages) using mutual funds or exchange-traded
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Question:
Assume you have $600,000 to invest. Show a portfolio allocation (in percentages) using mutual funds or exchange-traded funds based on each of the below models in building a portfolio.
A) the single index model;
B) The three-factor model; and
C) the four-factor model
Hint: Use a value fund, or small-cap fund, etc (there are several styles), but state the actual name(s) of the fund(s) that you are using as well as its style.
Required
Discuss why you prefer C to B, or B to A, or it really does not matter which model you use in terms of the resulting return and risk.
Related Book For
The Essentials of Statistics A Tool for Social Research
ISBN: 978-1111829568
3rd edition
Authors: Joseph F. Healey
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