Which is correct about quadratic optimization?

		Buys a representative sample of stocks in the benchmark index according to their weights in the index
		All securities in the index are purchased in proportion to weights in the index
		This relies on historical correlations, which may change over time, leading to failure to track the index
		Reinvestment of dividends is less difficult

Which one is not correct?

		Any security with an estimated return that plots above the SML is underpriced
		In equilibrium, all assets and all portfolios of assets should plot on the SML
		A superior investor must derive value estimates for assets that are consistently superior to the consensus market evaluation to earn better rates of return than the average investor
		Any security with an estimated return that plots below the SML is overpriced

Which one is not for the passive portfolio managment?

		Usually tracks an index over time
		Manager is judged on how well they overperform the target index
		Long-term buy-and-hold strategy
		Designed to match market performance