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Consider the Treynor-Black model.The alpha of an active portfolio is 2%.The expected return on the market index is 12%.The variance of the return on the market portfolio is 4%.The nonsystematic variance of the active portfolio is 2%.The risk-free rate of return is 3%.The beta of the active portfolio is 1.15.The optimal proportion to invest in the active portfolio is
Adrenal Gland
A gland above the kidney that produces hormones related to stress responses and blood pressure regulation.
Hormone
A chemical substance produced in the body that regulates and controls the activity of certain cells or organs.
Bloodstream
The flowing body fluid that delivers necessary substances such as nutrients and oxygen to the cells and transports metabolic waste products away from those same cells.
Antagonist
A substance or character that opposes or inhibits the action of another in a particular situation or story.
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