True or False

12. If you have the historical data of S&P500 index level in the last 5 years, you can compute the returns of investment in 500 stocks in the S&P500. Assume you know the 500 constituents.

13. If you just watched bad news on the market on CNBC and if you believe the market risk premium is 0.5% for the next month and, you should short sell the market to maximize your Sharpe ratio.

14. A portfolios net return is a weighted arithmetic average of the net returns of its constituents while the portfolios long-term holding period return is the sum of the net returns of the portfolio in each period.

15. When you mix multiple risky assets to maximize Sharpe ratio, you should invest at least $1 in all assets for diversification if short sale is not allowed. It means that your optimal weights are all positive and there are no zeros.