What was most remarkable from the fund performance was ____________________.

a.

The fund seldom returned a negative monthly return, but when it did, the monthly return was minimal (i.e. a low negative percentage)

b.

The fund produced a negative monthly return about as often as it produced a positive monthly return.

c.

The fund only produced a negative monthly return once.

d.

The fund seldom returned a negative monthly return, but when it did, the monthly return was significant (i.e. significantly negative percentage return)

e.

The fund never produced a negative monthly return.

ChatGPT

The most remarkable aspect of the fund performance was:

a. The fund seldom returned a negative monthly return, but when it did, the monthly return was minimal (i.e., a low negative percentage).

User

We have a current universe of 10,000 assets and have used mean variance optimization to generate an efficient frontier.

We then discover 50 new assets. I say discover, but lets assume that these assets were previously unavailable to us (we were prohibited from owning them) and are now available.

We re-run our Mean Variance analysis using the expanded universe of 10,500 assets.

What would we expect to see happen to the efficient frontier?

a.

Significant shift down and to the right.

b.

Nothing

c.

Significant shift up and to the left.

d.

Some shift down and to the right (but likely not a significant one).

e.

Some shift up and to the left (but likely not a significant one).

ChatGPT

d. Some shift down and to the right (but likely not a significant one).

When you add new assets to your universe, it typically increases the opportunities for diversification, which means you can potentially achieve higher returns for the same level of risk (or reduce risk for the same level of return). This would result in some shift down and to the right on the efficient frontier, indicating improved risk-return trade-offs. However, the extent of the shift would depend on various factors, including the characteristics and correlations of the new assets with the existing ones.

User

We have a current universe of 10,000 assets and have used mean variance optimization to generate an efficient frontier.

We then discover 50 new assets. I say discover, but lets assume that these assets were previously unavailable to us (we were prohibited from owning them) and are now available.

We re-run our Mean Variance analysis using the expanded universe of 10,500 assets.

What would we expect to see happen to the efficient frontier?

a.

Significant shift down and to the right.

b.

Nothing

c.

Significant shift up and to the left.

d.

Some shift down and to the right (but likely not a significant one).

e.

Some shift up and to the left (but likely not a significant one).

ChatGPT

a. Significant shift down and to the right.

When you add new assets to your universe, it typically increases the opportunities for diversification. This means you can achieve a higher expected return for the same level of risk (or reduce risk for the same level of expected return), which leads to a significant shift down and to the right on the efficient frontier. The expanded universe of assets provides more choices for portfolio construction, allowing you to find more optimal portfolios with improved risk-return trade-offs.

User

We have a current universe of 10,000 assets and have used mean variance optimization to generate an efficient frontier.

We then discover 50 new assets. I say discover, but lets assume that these assets were previously unavailable to us (we were prohibited from owning them) and are now available.

We re-run our Mean Variance analysis using the expanded universe of 10,500 assets.

What would we expect to see happen to the efficient frontier?

a.

Significant shift down and to the right.

b.

Nothing

c.

Significant shift up and to the left.

d.

Some shift down and to the right (but likely not a significant one).

e.

Some shift up and to the left (but likely not a significant one).

ChatGPT

a. Significant shift down and to the right.

When you add new assets to your universe, it typically increases the opportunities for diversification. This means you can achieve a higher expected return for the same level of risk (or reduce risk for the same level of expected return), which leads to a significant shift down and to the right on the efficient frontier. The expanded universe of assets provides more choices for portfolio construction, allowing you to find more optimal portfolios with improved risk-return trade-offs.