To determine the optimal risky portfolio in the Treynor-Black Model,macroeconomic forecasts are used for the _________ and composite forecasts are used for the __________.
A)passive index portfolio; active portfolio
B)active portfolio, passive index portfolio
C)expected return; standard deviation
D)expected return ; beta coefficient
E)alpha coefficient; beta coefficient

Question

Quizplus · Accepted Answer

Macroeconomic forecasts are used for the passive index portfolio, while composite forecasts are used for the active portfolio in the Treynor-Black Model.

To Determine the Optimal Risky Portfolio in the Treynor-Black Model,macroeconomic