Discuss the implication of correlation coefficient

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Reference no: EM13914441

(1) Please draw the efficient frontiers and discuss the relevant implication under the following assumptions: (a) Risk free assets are possible and short sale is not allowed; (b) Risk free assets are impossible and short sale is not allowed.

(2) Please discuss the implication of correlation coefficient and your trading strategy based on correlation coefficient

(3) Please discuss the most effective factors entering into the multi-index model and their potential effects on security returns

Reference no: EM13914441

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