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Please answer all if not dont take Question 1: Question 2: Question 3: Ken does an analysis of XYZ's past prices using historical data, and
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Ken does an analysis of XYZ's past prices using historical data, and observes he past prices seem to follow an upwards trend. He concludes that he expects o earn a positive expected profit with the following investment strategy: WXYZ=1=fractionofwealthinvestedinXYZ WRf=0= fraction of wealth invested in the risk-free asset s this consistent with weak-form market efficiency? Answer yes or no, and explain in three sentences or less. ETF XYZ is a portfolio of ONLY risky assets. If the assumptions of the CAPM hold, what is the expected return for this ETF? Discuss how the APT alpha differs from idea of the CAPM alpha. If they do no differ, explain why. If they do differ, explain what may cause the difference between the CAPM alpha and the APT alpha. Answer in four sentences or lessStep by Step Solution
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