Assume That Stock Market Returns Do Not Resemble a Single-Index

question 38

Multiple Choice

Assume that stock market returns do not resemble a single-index structure. An investment fund analyzes 150 stocks in order to construct a mean-variance efficient portfolio constrained by 150 investments. They will need to calculate _____________ expected returns and ___________ variances of returns.

• A) 150; 150
• B) 150; 22500
• C) 22500; 150
• D) 22500; 22500

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Definitions:

Cardinal Trait

A personality characteristic that is so pervasive and dominant in a person's behavior that it influences nearly every act.

Safety Needs

A level in Maslow's hierarchy of needs that includes protection from elements, security, order, law, stability, and freedom from fear.

Biological Forces

The natural and genetic factors that influence human physiology, behavior, and health, including heredity, brain chemistry, and physical health.

Gender Discrimination

Unfair treatment or considerations based on an individual's sex or gender, often leading to inequality.