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1. What is the sharpe ratio and why does it make sense to use that metric to make investment decisions? 2. The CAPM is based

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1. What is the sharpe ratio and why does it make sense to use that metric to make investment decisions? 2. The CAPM is based on this equality: E[stock]rf=E[mercado]rf What does this imply? What is the CAPM assuming? 3. What is booststrap and what is it for? 4. What is the beta of an asset and why is it important? 5. Explain the efficient markets hypothesis

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