Recall the Treynor-Black model. You have determined that the current Sharpe Ratio for the market portfolio is 0.40. You have formed an active portfolio that has a non-systematic standard deviation of 6.2%. Assume your goal is to create an optimally constructed portfolio using the Treynor-Black approach. What would the alpha of your active portfolio need to be if the target Sharpe ratio for your constructed portfolio is 0.60?

Consider the market timing indicators we discussed in class. What is a “spurious indicator”? (3 pts) What concerns should we have when using spurious indicators for trading? (2 pts)

Jill tells her broker that she does not want to sell her stocks that are below the price she paid for them. She believes that if she just holds on to them a little longer they will recover, at which time she will sell them. What behavioral characteristic is Jill exhibiting in her decision making?

Kahneman and Tversky (1973) report that __________ and __________. Select one of the provided answers.

Consider these two investment strategies:                                                 Strategy 1                   Strategy 2 Expected Return                    4.0%                            8.0% Standard Deviation                0.0%                            5.0% Highest Return                        4.0%                           14.0% Lowest Return                          4.0%                            4.0% Which of these two strategies (Strategy 1 or Strategy 2) is the dominant strategy? Provide comments in defense of your answer.

This cell type can be found in hyaline cartilage:

Absent any research, what would you expect the alpha of a randomly selected stock to be?

The strength of an agglutination reaction can be enhanced by:

The fluorescent result of a sample measured by immunoassay is greater than the highest standard. What corrective action should be taken?

The CD cell surface membrane marker that appears on all CD4 and CD8 positive T lymphocytes is: