<t>I have a quick question regarding portfolio optimization. I want to use the reverse optimization process as outlined in the Black Litterman model, and obtain the expected returns. Now, BL model assumes that the benchmark is optimal. Now, given these expected returns, can I optimize for a specific...

<t>Hi,can anyone help me as far as to what method people prefer in determining the appropriate cost of equity? For me CAPM, works when beta is close to 1 but when it is 0.3 (WMT), the fair value that i get is huge. If i use the historical implied cost of equity, then the targets are more reasonable....

dave,is there any good book that will go into what you are saying. i think your point is an interesting one but i need some help in figuring out the right equation. thanks, anish

<t>Hi,Does anyone know how to calculate aggregate ETF earnings estimate given the eps estimates for the consituents? I guess the second part of the question is what is the divisor used for an etf. someone told me that it is the number of creation units. i looked at the prospectus and did not find ho...

Hi,Does anyone know, what the correct procedure is to calculate the ETF aggregate earnings estimate given the estimates of its consituents? Thanks a ton.anish

Does anyone know the procedue on how to calculate EPS estimate for an ETF given the individual constituent eps estimate numbers? My main issue is what to use for the divisor. Any help will be much appreciated. thank you in advance.anish

Thank you all for your help. Time for me to implement these one by one. thanks again.

<t>I have a question regarding efficient portfolio. is there a website or a book that details how to construct this in excel. i have read benninga, but i don't understand the use of arbitrary value of c. if someone can give me an intuitive explanation of that, that would be great. also, are there an...