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Homework answers / question archive / Which statements are true/false 1
Which statements are true/false
1. Portfolio optimization is useful for asset selection
2. Portfolio optimization is useful for asset rotation
3. Portfolio optimization is useful for market timing
4. Portfolio optimization provides weights which result in profitable/positive (green) positions.
5. Portfolio optimization is best when combined with the pairs trading strategy
3. False, Portfolio Optimization helps in picking the asset but doesn't help with the market timing
4.True. portfolio optimization assign optimization weight for each assets class and all the assets within that class
5.True. portfolio optimization best works with trading strategy as the strategy incorporates the global financial uncertainty which is overlooked by portfolio optimization