Reading 55: Theory of Active Portfolio Management

So theoretically this all makes sense, however the formulas and equations makes this topic absolutley grueling. Now, what I am confused about is the LOS: “Describe the steps and the approach of the treynor black model…”

It doesn’t specifically say calculate, however, the majority of the end of chapter questions require computation; thus it took me over 4 hours, and I got everything wrong. Can anybody provide light in regards to how to tackle this LOS, and whether we need to know how to compute everything.


No need to calculate.

Cheers! Now I can wipe the crap from boxer briefs.