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- What does it mean that portfolio diversification can reduce risk, and how does the efficient frontier logically fit into this discussion? include correlation, asset allocation, and asset classes or benchmarks in your answer.Explain the rationale behind the choices and objectives of portfolio manager in selection of active versus passive investment management strategy.Why does Portfolio analysis stimulates the use of externally oriented data to supplement management’s judgment?Give examples
- Investigate the role of behavioral biases and market anomalies in challenging market efficiency. Discuss how portfolio managers can account for these factors while constructing and managing investment portfolios.Why does the advantage of Portfolio analysis it stimulates the use of externally oriented data to supplement management’s judgment?Give examplesWhat is the difference between active and passive portfolio management
- When assessing investment performance, what statistical notion do many portfolio managers employ to describe risk?Why the advantage of Portfolio analysis is it stimulates the use of externally oriented data to supplement management’s judgment?Describe Asset/Liability Models and explain why it is better than Value-at-Risk Models for Portfolio Management.
- The aspect least likely to be included in the portfolio management process isa. Identifying an investor’s objectives, constraints, and preferences.b. Organizing the management process itself.c. Implementing strategies regarding the choice of assets to be used.d. Monitoring market conditions, relative values, and investor circumstances.Derive the Capital Asset Pricing Model (CAMP) and also discuss the assumptions that are necessary in the development of the CAPM. Explain how CAMP related to portfolio theory. Discuss managerial applications of CAPM.Explain Systematic (market risk) and Business-specific risk. Can diversification of the portfolio reduce each? please explain to me as simply as possible.