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:

Industrial Workers

Workers employed in industries such as manufacturing, mining, and construction, often involving manual labor or skilled trades.

Economic Independence

A condition where a person, organization, or country can sustain themselves without relying on external financial support.

Populists

Founded in 1892, a group that advocated a variety of reform issues, including free coinage of silver, income tax, postal savings, regulation of railroads, and direct election of U.S. senators.

Bryan

Commonly refers to William Jennings Bryan, an American orator and politician known for his populist views, and his advocacy for free silver, and a three-time Democratic presidential candidate.