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

question 88

Multiple Choice

Assume that stock market returns do not resemble a single-index structure.An investment fund analyzes 100 stocks in order to construct a mean-variance efficient portfolio constrained by 100 investments.They will need to calculate _____________ expected returns and ___________ variances of returns.

• A) 100,100
• B) 100,4950
• C) 4950,100
• D) 4950,4950
• E) none of these

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Definitions:

Seniors

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A sociological perspective emphasizing how individuals interpret and give meaning to social interactions, objects, and events in their daily lives, shaping their social reality.

George Herbert Mead

An American philosopher, sociologist, and psychologist associated with the Chicago School of sociology, known for his theories on the social self and the development of self through interaction.