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True or False12. If you have the historical data of S&P500 index level inthe last 5 years, you can compute the returns of investment in 500stocks in the S&P500. Assume you know the 500 constituents.13. If you just watched bad news on the market on CNBC and ifyou believe the market risk premium is 0.5% for the next month and,you should short sell the market to maximize your Sharpe ratio.14. A portfolio’s net return is a weighted arithmetic average ofthe net returns of its constituents while the portfolio’s long-termholding period return is the sum of the net returns of theportfolio in each period.15. When you mix multiple risky assets to maximize Sharpe ratio,you should invest at least $1 in all assets for diversification ifshort sale is not allowed. It means that your optimal weights areall positive and there are no zeros.