Suppose You Are Doing a Portfolio Analysis That Includes All

question 7

Multiple Choice

Suppose you are doing a portfolio analysis that includes all of the stocks on the NYSE. Using a single-index model rather than the Markowitz model

• A) increases the number of inputs needed from about 1,400 to more than 1.4 million.
• B) increases the number of inputs needed from about 10,000 to more than 125,000.
• C) reduces the number of inputs needed from more than 125,000 to about 10,000.
• D) reduces the number of inputs needed from more than 5 million to about 10,000.
• E) increases the number of inputs needed from about 150 to more than 1,500.

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Definitions:

CS and US

In classical conditioning, CS stands for Conditioned Stimulus, which is a previously neutral stimulus that, after becoming associated with the unconditioned stimulus (US), eventually comes to trigger a conditioned response.

Conditioned Stimulus

In classical conditioning, a previously neutral stimulus that, after becoming associated with the unconditioned stimulus, eventually comes to trigger a conditioned response.

Conditioned Response

A learned response to a previously neutral stimulus that has become associated with an unconditioned stimulus through conditioning.

Sound of the Train

The auditory experience associated with a train moving along its tracks, often characterized by a rhythmic, rumbling noise or whistle.