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What does a shrinkage factor of 1 mean in the James-Stein estimator? the asset class is too highly correlated with another asset class and cannot
What does a shrinkage factor of 1 mean in the James-Stein estimator? the asset class is too highly correlated with another asset class and cannot help to diversify the portfolio the asset class is too risky and its estimated retum must be too high the precision of the estimate for this asset class is too imprecise to use and it should be replaced with the "grand mean
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