-The Thin Horizontal Arrows in the Figure Above Show That

question 46

Multiple Choice

-The thin horizontal arrows in the figure above show that

• A) the warmer arterial blood can bypass the legs as needed, when the legs are too cold to function well.
• B) the warmer venous blood transfers heat to the cooler arterial blood.
• C) the warmer arterial blood transfers heat to the cooler venous blood.
• D) the arterial blood is always cooler in the abdomen, compared to the temperature of the venous blood in the feet of the goose.
• E) the goose's legs get progressively warmer as the blood moves away from the abdomen to the feet.

Understand the principles and assumptions behind the Treynor-Black model in portfolio management.

Calculate the standard deviation of returns on an active portfolio given its beta, the standard deviation of the market index, and its nonsystematic variance.

Describe the optimal weighting of securities within an active portfolio according to the Treynor-Black model.

Differentiate between a purely passive investment strategy and one that combines passive and active elements.