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

question 36

Multiple Choice

Assume that stock market returns do not resemble a single-index structure.An investment fund analyzes 40 stocks in order to construct a mean-variance efficient portfolio constrained by 40 investments.They will need to calculate _____________ expected returns and ___________ variances of returns.

• A) 100,100
• B) 40,40
• C) 4950,100
• D) 4950,4950
• E) 80,80

---

Definitions:

Auditory

Related to the sense of hearing or the perception of sound.

Common Mode

A term used in electrical engineering to refer to a situation where two or more parts of a system experience the same fluctuations or interference.

Negative Symptoms

Symptoms of certain mental health disorders, such as schizophrenia, that indicate a lack of functions or experiences, including diminished emotions or motivation.

Emotional Blunting

A reduction in the intensity of an individual's emotional response, which can be a symptom of psychiatric conditions or a side effect of some medications.