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Imposing some weight constraints usually leads to better performing portfolios... (more than one answer may be true) 1 point because it prevents one company held
Imposing some weight constraints usually leads to better performing portfolios... (more than one answer may be true)
1 point
because it prevents one company held in a portfolio from going bankrupt.
because it limits the impact of estimation errors made on expected returns.
because it limits the impact of estimation errors made on volatilities.
because it increases turnover.
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