The Primary Drawback to Structural Equation Modelling (SEM)is That SEM

question 116

True/False

The primary drawback to structural equation modelling (SEM)is that SEM typically requires more data observations than regression.

---

Definitions:

Modern Portfolio Theory

An investment theory that proposes optimizing the expected return for a given amount of portfolio risk, or alternatively minimizing risk for a given level of expected return, through diversification.

Markowitz

Harry Markowitz, an economist who developed Modern Portfolio Theory, emphasizing the benefits of diversification.

Excess Returns

Excess returns refer to the amount by which an investment outperforms a benchmark or risk-free rate.

Inside Trades

Transactions in a company's securities made by its officers, directors, or holders of more than 10% of the stock, typically subjected to strict regulatory scrutiny.