Assume That Stock Market Returns Do Follow a Single-Index Structure

question 22

Multiple Choice

Assume that stock market returns do follow a single-index structure.An investment fund analyzes 200 stocks in order to construct a mean-variance efficient portfolio constrained by 200 investments.They will need to calculate ________ estimates of expected returns and ________ estimates of sensitivity coefficients to the macroeconomic factor.

• A) 200;19,900
• B) 200;200
• C) 19,900;200
• D) 19,900;19.900
• E) none of these

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Definitions:

Transcription

The process of transcribing DNA into RNA, a fundamental aspect of gene expression.

Transcription Factors

Proteins that regulate the transcription of genes by binding to DNA and influencing RNA synthesis.

Gene Expression

The process by which information from a gene is used in the synthesis of a functional gene product, usually proteins, affecting the cell function.

Transcription

A process in which the DNA sequence in a gene is copied into mRNA.