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.

---

Definitions:

Secured Interests

Interests in personal property or fixtures that secure payment or performance of an obligation, often seen in lending and financing agreements.

Take Possession

Take possession refers to the act of assuming physical control or ownership of a piece of property or asset.

Collateral

Assets promised as security for the repayment of a loan, which can be seized by the lender if the borrower fails to repay according to the terms of the loan agreement.

Security Agreement

A legal document that provides a lender a security interest in a specified asset or property that is pledged as collateral.