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

question 29

Multiple Choice

Assume that stock market returns do not resemble a single-index structure.An investment fund analyzes 40 stocks in order to construct a mean-variance efficient portfolio constrained by 40 investments.They will need to calculate _____________ expected returns and ___________ variances of returns.

• A)100; 100
• B)40; 40
• C)4950; 100
• D)4950; 4950

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Definitions:

Early Majority

A segment of adopters in the diffusion of innovations theory that represents those who adopt a new technology or idea after a tentative initial period.

Early Adopters

The first individuals to use or adopt a new product, technology, or innovation, often influencing others in their social circles.

Crossing The Chasm

A marketing theory that describes the challenge of transitioning from early adopters to a broader mainstream customer base.

Saboteurs

Individuals or groups that engage in sabotage, intentionally destroying, damaging, or obstructing something, often for political or personal reasons.