cchang

The ST borrowing formulas are nasty. Very hard to remember. Are u referring to LOC, BA, CP? They are in the 11th hour guide though. Thanks

Anyone ever see Zero Beta Portfolio on a previous mock or exam ?
I jotted down few quick notes.

Zero Beta:
higher intercept - E(r)
flatter slope - smaller MKt Risk Prem
some unsystematic risk but 0 systematic risk
doesn't effect the CML but does change the SML
uncorrelated with the MKT.

Any other Q's please post!
Thanks