Problem

a. Look at the efficient portfolios constructed from the 10 stocks in Table 8.1. How does...

a. Look at the efficient portfolios constructed from the 10 stocks in Table 8.1. How does the possibility of short sales improve the choices open to the investor?


b. Now download up to 10 years of monthly returns for 10 different stocks and enter them into the Excel program. Enter some plausible figures for the expected return on each stock and find the set of efficient portfolios.

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Solutions For Problems in Chapter 8