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20. Suppose that the alpha forecasts in row 39 of Spreadsheet 8.1 are doubled. All the other data remain the same. a. Use the Summary
20. Suppose that the alpha forecasts in row 39 of Spreadsheet 8.1 are doubled. All the other data remain the same. a. Use the Summary of Optimization Procedure to estimate back-of-the-envelope calculations of the information ratio and Sharpe ratio of the newly optimized portfolio. b. Now recalculate the entire spreadsheet example, find the optimal risky portfolio, and verify your backof-the-envelope calculation. 20. Suppose that the alpha forecasts in row 39 of Spreadsheet 8.1 are doubled. All the other data remain the same. a. Use the Summary of Optimization Procedure to estimate back-of-the-envelope calculations of the information ratio and Sharpe ratio of the newly optimized portfolio. b. Now recalculate the entire spreadsheet example, find the optimal risky portfolio, and verify your backof-the-envelope calculation
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