For portfolios having a mean return of 25%, the minimum standard deviation of return is 29.53%. The weight on the UK index in this optimal portfolio is -110%, and is the only negative weight. Explain why the UK index is so aggressively shorted.

Answer rating: 100% (QA)

Reasons for Aggressively Shorting the UK Index 1 Economic Concerns Investors might have negative views on the UK economy such as sluggish growth high ... View the full answer