i need an answer for Q3

UlASs and for inflation. Also find the correlation between the adsheet pute the serial correlation in decade returns asset classes. What do the data indicate? Convert the asset returns by decade Challenge Problem 20 for the real rates of return presented in the table into real rates. Repeat the analysis of The following data apply to CFA Problems 1 through 3: Hennessy & Associates manages a S30 million equity portfolio for the multimanager Wilstead Pension Fund. Jason Jones, financial vice resident of Wilstead, noted that Hennessy had rather consistently achieved the best record among the Wilstead's six equity managers. Performance of the Hennessy portfolio had been clearly superior to that of the S&P 500 in 4 of the past 5 years. In the one less-favorable year, the shortfall was trivial CFA PROBLEMS ttom-up" manager. The firm largely avoids any attempt to "time the mar ket." It also focuses on selection of individual stocks, rather than the weighting of favored industries There is no apparent conformity of style among Wilstead's six equity managers. The five manag ers, other than Hennessy, manage portfolios aggregating $250 million made up of more than 150 individual issues. Jones is convinced that Hennessy is able to apply superior skill to stock selection, but the favor able returns are limited by the high degree of diversification in the portfolio. Over the years, the portfolio generally held 40-50 stocks, with about 2%-3% of total funds committed to each issue. The reason Hennessy seemed to do well most years was that the firm was able to identify each year 10 or 12 issues that registered particularly large gains. On the basis of this overview, Jones outlined the following plan to the Wilstead pension committee: Let's tell Hennessy to limit the portfolio to no more than 20 stocks. Hennessy will double the commitments to the stocks that it really favors, and eliminate the remainder. Except for this one new restriction, Hennessy should be free to manage the portfolio exactly as mittee generally supported Jones's proposal because all that Hennessy had seemed to demonstrate superior skill in selecting stocks. Yet the proposal la isl af tha nortfolio? Explain. before All the members of the pension com agreed was a considerable departure from previous practice, and several committe members raised ques- tions. Respond to each of the following questions