Q1 Assume you want to run a computer program to derive the efficient

frontier for your feasible set of stocks. What information must you input

to the program? Explain

Q2 Explain two different weaknesses of using each of the three

benchmarks to measure the performance of a portfolio: The Sharpe

ratio, The Treynor's measure and the information ratio measure.

Q3 Explain using your own words the "Separation property' in the CML

(shot answers are not accepted)

Q4 "The goal of the passive manager should be to minimize the

portfolio's return volatility relative to the index and to minimize tracking

error"

Q5 Explain the relationship between the stock market weak efficiency,

portfolio management strategies, and asset selection process (08 lines

minimum)

Q6 List and explain the main implications of the dividend discount model

(DDM)