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Financial Risk Manager Part 2

Financial Risk Manager Part 2

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In constructing an equity portfolio using mean/variance optimization as instructed by the portfolio manager, what specific procedures should analysts follow to effectively implement this strategy? This includes conducting alpha analysis to determine expected returns, adjusting these alphas to conform with the portfolio's constraints, excluding any extreme alpha values that could skew results, and removing any biases or undesirable bets to ensure a robust portfolio construction.

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