To Determine the Optimal Risky Portfolio in the Treynor-Black Model

question 19

Multiple Choice

To determine the optimal risky portfolio in the Treynor-Black model, macroeconomic forecasts are used for the _________, and composite forecasts are used for the __________.

• A) passive index portfolio; active portfolio
• B) active portfolio, passive index portfolio
• C) expected return; standard deviation
• D) expected return ; beta coefficient
• E) alpha coefficient; beta coefficient

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Definitions:

Therapeutic Uses

Describes the application of a drug or medical treatment for the purpose of curing or alleviating symptoms of diseases or disorders.

Radiologist

A medical doctor specialized in diagnosing and treating diseases and injuries using medical imaging techniques, such as X-rays, MRI, and CT scans.

Dark Room

A room used for developing photographic films and prints, where light exposure is controlled.