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Students should read the Harvard Business School case study entitled 'Investments: Delineating an Efficient Portfolio' and answer the following questions. Students should note that the
- Students should read the Harvard Business School case study entitled 'Investments: Delineating an Efficient Portfolio' and answer the following questions.
- Students should note that the risk of the portfolio should not be more than 10% per year. Students should use the dataset in the Stock Spreadsheet for their calculations.
- Key contextual elements should include risk diversification, portfolio theory, efficient frontier, Sharpe ratio, correlation analysis, risk and return.
questions:
o Make a two-asset portfolio and examine how risk is diversified.
o Make an efficient multiple-asset portfolio.
o Make an efficient multiple-asset portfolio and analyze the effect of adding a risk-free asset to a portfolio containing risky assets.
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