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Consider an environment of 8 0 individual risky securities and one risk free asset. One investor is selecting between the Markowitz mean - variance frontier

Consider an environment of

80

individual risky securities and one risk free asset. One investor

is selecting between the Markowitz mean

-

variance frontier framework and the index model in

the portfolio analysis. Answer the following questions:

(

)

How many parameters are used as the input to construct the mean

-

variance frontier?

(5

marks

)

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