Efficient Frontier: Explain in detail how each point on the efficient frontier is constructed (i.e. if you told Excel Solver to construct the EF for you, what is it doing behind the scenes to construct the curve). (4 points)   Describe briefly why an investor would want to be on the CML (capital market line) over the EF?

When factory personnel are responsible for production planning and the organizations wants to minimize their interactions with the ERP system, this is characterized by?

EXTRA CREDIT: Your portfolio manager tells you that they delivered 15% last year. You follow up with the portfolio manager and ask them for two years of performance data which they give you. You take the data from year t-2 to year t-1 and run the following regression: Ri = Rf  + βmRm + βsmbRsmb + βhmlRhml   And you find that:           βm = 1.10      βsmb = 1.2      βhml = 0.80 Using the following returns from year t-1 to year 0: Rf =  0         Rm = .12      Rsmb =  .01      Rhml =   .02      Did the portfolio manager actually do well over yr t-1 to 0-  what were their FF adjusted returns? According to the Beta coefficients, what types of risk is the manager primarily taking?  (3 points)  

Mark the False statement below:

What best describes the pathologic changes of red blood cells in a patient with sickle cell anemia?

What is the Sharpe measure for portfolio C? 

The beta of a security is equal to: covariance between the security and market return divided by variance of the market’s returns

Most believe market efficiency has been weakening over time (since the 1970s) since data availability has increased and inexpensive trading has increased as well.

You have decided that you want to buy into a mutual fund and hold it for 10 years or longer.  Which of the following would be the best to pick if you wish to minimize fees paid:

In which of the following ways was Emperor GoDaigo different than his predecessors?