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

question 50

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
• E) 300

---

Definitions:

Represent Objects

The cognition to maintain, manipulate, or recreate the image or idea of something in the mind, despite its absence in the immediate environment.

Accurately or Inaccurately

Refers to the degree of correctness or error present in a statement, measurement, or assessment.

Age

The length of time that a person or thing has existed, typically measured in years.

Concentrate on an Exam

The act of focusing one's mental effort and attention solely on the preparation for and execution of a test.