Suppose You Are Doing a Portfolio Analysis That Includes All

question 28

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 _______ the number of inputs needed from _______ to ________.

• A) increases,about 1,400,more than 1.4 million
• B) increases,about 10,000,more than 125,000
• C) reduces,more than 125,000,about 10,000
• D) reduces,more than 3.6 million,about 8,100
• E) increases,about 150,more than 1,500

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Definitions:

Compounded Semi-annually

A technique used to compute interest in which the interest is compounded semi-annually by being added to the principal sum two times within the year.

Compounded Quarterly

The process where interest on an investment is calculated and added to the principal every three months, contributing to the growth of the investment amount.

Compounded Monthly

Entails the regular addition of interest to the principal balance of a loan or deposit every month, affecting overall returns or costs.

Semi-monthly Payments

Payments that are made twice a month, often on the 1st and 15th, typically in the context of salaries or loans.