Some people like to play a game that constructs a sequence of chemical elements where each element in the sequence begins with the last letter of its predecessor. For example,….

## Advanced Portfolio Theory-Assume that you are at Jan 1 2016 (and therefore only have information available up to an including Dec 2015)

__Advanced Portfolio Theory__

**(not required)**

- Assume that you are at Jan 1 2016 (and therefore only have information available up to an including Dec 2015). Assuming the single index model holds, what is the optimum portfolio assuming (1) no short sales and (2) the risk-free is the mean historical risk free rate? What is the mean return and standard deviation of this optimum portfolio?

- Assume that you are at Jan 1 2016 (and therefore only have information available up to an including Dec 2015). Assuming the single index model holds, what is the optimum portfolio assuming (1) short sales and (2) the risk-free is the mean historical risk free rate? What is the mean return and standard deviation of this optimum portfolio? 14 marks

- (
**you can find the answer in the book)**

**3.(**

**you can find the answer in the book)**Assess the performance of your two optimum portfolios (from question 1). You should assess performance using at least 4 tests of performance, including at least 2 that rely on multi-beta asset price modelling. For the tests that use multi-beta asset price modelling, data is available from Ken French database of asset price factors at

__http://mba.tuck.dartmouth.edu/pages/faculty/ken.french/data_library.html__Interpret the performance measures and provide a comment on the performance of the optimum portfolios. 12 marks

**( for this question please: write 4 pages, use 2 articles that mentioned in the question which is I already uploaded, plus the other 4 articles that I uploaded)**