The Treynor-Black Model Is a Model That Shows How an Investment

question 23

Multiple Choice

The Treynor-Black model is a model that shows how an investment manager can use security analysis and statistics to construct

• A) a market portfolio.
• B) a passive portfolio.
• C) an active portfolio.
• D) an index portfolio.
• E) a balanced portfolio.

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Definitions:

Ex Rights

The status of a stock that is sold without the benefit of any rights that may have been issued to shareholders to purchase additional shares, often at a discount.

Debt Offerings

Debt offerings involve a company issuing debt instruments, like bonds, to raise capital, obligating the company to repay the principal with interest.

Equity Offerings

The process by which companies issue shares of stock to the public or specific investors to raise capital.

Appropriate Price

The price at which assets are considered rightly valued given current market conditions and fundamentals.