CAS Exam 9 Spring 2014, Question 4
Study guide: Exam 9
Part a (1 point)
Discuss two challenges with using a Markowitz model to analyze 200 technology stocks within a broader portfolio.
Part b (0.5 points)
Briefly discuss how the single-index model does or does not overcome each of the challenges of the Markowitz model identified in part a. above.
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