Bodie rcus INVESTMENTS Fourth Edition Index model and portfolio construction n assets ■ n expected returns n betas n oe Irwvin/McGrazo-Hill 10-11 The McGraw-Hill Companies, Inc, 1999Irwin/McGraw-Hill 10-11 © The McGraw-Hill Companies, Inc., 1999 INVESTMENTS Fourth Edition Bodie Kane Marcus Index model and portfolio construction Index model and portfolio construction „ n assets „ n expected returns „ n betas „ ( ) 2 i n σ e 2 σ M