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

Multiple Choice

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