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

question 55

Multiple Choice

Assume that stock market returns do not resemble a single-index structure.An investment fund analyzes 40 stocks in order to construct a mean-variance efficient portfolio constrained by 40 investments.They will need to calculate _____________ expected returns and ___________ variances of returns.

• A)100; 100
• B)40; 40
• C)4950; 100
• D)4950; 4950
• E)None of the options

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Definitions:

Muscular Strength

The highest level of force that can be generated by a muscle or a collection of muscles during one attempt.

Vital Tissues

Tissues in the body that are essential for life, including the heart, brain, and lungs, which require a constant supply of nutrients and oxygen.

Muscular Endurance

The ability of a muscle or group of muscles to sustain repeated contractions or to continue applying force against a fixed object for an extended period.

Cardiorespiratory Fitness

The capacity of the heart, lungs, and circulatory system to provide oxygenated blood to muscles in action throughout extended periods of physical exercise.