Active Investing and Multi-factor Models Project 3 Assignment Help

Task:

You are a portfolio analyst determining an optimal active portfolio management strategy for your Portfolio Manager. You are required to construct an appropriately weighted active portfolio and allocate between this active portfolio and the market portfolio. You will then determine whether the Carhart 4-factor model significantly increases the explanatory power of your active portfolio’s returns in comparison to the SIM. Finally, you will prepare a 3-minute presentation video to your Portfolio Manager, where you will present an analysis and comparison of your results.