The Treynor-Black Model Assumes That

question 16

Multiple Choice

The Treynor-Black model assumes that

• A) the objective of security analysis is to form an active portfolio of a limited number of mispriced securities.
• B) the cost of less than full diversification comes from the nonsystematic risk of the mispriced stock.
• C) the optimal weight of a mispriced security in the active portfolio is a function of the degree of mispricing,the market sensitivity of the security,and its degree of nonsystematic risk.
• D) all of these are true.
• E) none of these are true.

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Definitions:

Skills Gaps

The difference between the skills required for a job and the actual skills possessed by employees, indicating a need for additional training or hiring.

Skills Inventory

A comprehensive list or database that details the skills, qualifications, and experiences of employees within an organization.

Management Inventory

An assessment tool or database used to track and evaluate the skills, qualifications, and development needs of management personnel within an organization.

Skills Inventory

A comprehensive list or database that details the specific skills, competencies, and qualifications of an organization's employees.