y cI] cI/hLI [r z cV] cV/hIV   This equation can be rearranged to show that   [r z cV] [ r y cI] (cI cV)/hIV         E-INVESTMENTS: BETA COMPARISONS For each of the companies listed below, obtain the beta coefficients from http://moneycentral.msn.com/investor/research and http://www.nasdaq.com. Betas on the Nasdaq site can be found by using the info quotes and fundamental locations.   IMB, PG, HWP, AEIS, INTC   Compare the betas reported by these two sites. Are there any significant differences in the reported beta coefficients? What factors could lead to these differences? III. Equilibrium In Capital Markets 10. Single−Index and Multifactor Models The McGraw−Hill Companies, 2001           C H A P T E R T E N       SINGLE-INDEX AND MULTIFACTOR MODELS     Chapter 8 introduced the Markowitz portfolio selection model, which shows how to obtain the maximum return possible for any level of portfolio risk. Implementa- tion of the Markowitz portfolio selection model, however, requires a huge number of estimates of covariances between all pairs of available securities. Moreover, these estimates have to be fed into a mathematical optimization program that re- quires vast computer capacity to perform the necessary calculations for large port- folios. Because the data requirements and computer capacity called for in the full-blown Markowitz procedure are overwhelming, we must search for a strategy that reduces the necessary compilation and processing of data. We introduce in this chapter a simplifying