Homework answers / question archive / 1)The tracking portfolio: A) needs to have the less sensitivity to each factor as the asset we are tracking B) needs to have the same sensitivity to each factor as the asset we are tracking C) needs to have the more sensitivity to each factor as the asset we are tracking D) none of the above 2)Which of the following is/are subjective, according to the separation property of the asset allocation? Select one or more: A

1)The tracking portfolio: A) needs to have the less sensitivity to each factor as the asset we are tracking B) needs to have the same sensitivity to each factor as the asset we are tracking C) needs to have the more sensitivity to each factor as the asset we are tracking D) none of the above 2)Which of the following is/are subjective, according to the separation property of the asset allocation? Select one or more: A

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1)The tracking portfolio:
A) needs to have the less sensitivity to each factor as the asset we are tracking
B) needs to have the same sensitivity to each factor as the asset we are tracking
C) needs to have the more sensitivity to each factor as the asset we are tracking
D) none of the above

2)Which of the following is/are subjective, according to the separation property of the asset allocation? Select one or more: A. Determination of the efficient frontier B. Choice of the optimal complete portfolio C. Determination of the optimal risky portfolio D. Capital allocation between a risk-free asset and the optimal risky portfolio E. Determination of the best CAL