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

question 20

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 ____________ covariances.

• A) 12
• B) 150
• C) 22,500
• D) 11,175

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Definitions:

Radiolaria

Microscopic planktonic marine organisms with intricate silica skeletons, important in paleoclimate studies.

Trypanosomes

Single-celled parasitic protozoans, known for causing diseases like sleeping sickness in humans and animals.

Infect

The process by which organisms, such as bacteria, viruses, fungi, or parasites, enter, invade, and multiply within another organism, causing disease or illness.

Biting Insects

Biting insects are those that pierce the skin of humans or animals to feed on blood; common examples include mosquitoes, flies, and ticks, which can also act as vectors for various diseases.