Q2:

Q3:

Q2

Q2) Suppose an investor with a level of risk aversion equals 4 faced a market index portfolio with a price of risk equals 16 and a sharp ratio equals 0.32. Based on the previous information, what is the proportion of the risk-free asset that the investor should invest in? (10 points) Q3) What is the difference between smart beta ETFs and index ETFs? (10 points) portfolio construction starts with asset allocation. (5 points) a) Bottom-up b) Top-down c) Upside-down d) Side-to-side Q2) Suppose an investor with a level of risk aversion equals 4 faced a market index portfolio with a price of risk equals 16 and a sharp ratio equals 0.32. Based on the previous information, what is the proportion of the risk-free asset that the investor should invest in? (10 points)