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George has been speaking with an asset management firm, AssetCo, who are offering to implement his optimal portfolio strategy. AssetCo has told George they can
George has been speaking with an asset management firm, AssetCo, who are offering to implement his optimal portfolio strategy. AssetCo has told George they can further improve the expected return outcome on the portfolio for no increase in standard deviation. Assess the credibility of AssetCo's claim and advise George what theoretical and practical issues that you have studied in this course which would need to be taken into consideration before proceeding to invest with AssetCo. (Hint: consider disequilibrium and potential CAPM criticisms as part of your response). George has been speaking with an asset management firm, AssetCo, who are offering to implement his optimal portfolio strategy. AssetCo has told George they can further improve the expected return outcome on the portfolio for no increase in standard deviation. Assess the credibility of AssetCo's claim and advise George what theoretical and practical issues that you have studied in this course which would need to be taken into consideration before proceeding to invest with AssetCo. (Hint: consider disequilibrium and potential CAPM criticisms as part of your response)
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