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

question 38

Multiple Choice

Assume that stock market returns do not resemble a single-index structure. An investment fund analyzes 150 stocks in order to construct a mean-variance efficient portfolio constrained by 150 investments. They will need to calculate _____________ expected returns and ___________ variances of returns.

• A) 150; 150
• B) 150; 22500
• C) 22500; 150
• D) 22500; 22500

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Definitions:

Mutator Methods

Methods designed to set or modify the values of an object's attributes while keeping the encapsulation principle intact.

Integer Values

Whole numbers that can be positive, negative, or zero, not including decimals or fractions.

Instance Variable

A variable declared inside a class but outside any method, and is unique to each instance of the class.

Preconditions

Conditions that must be true before a function or operation can proceed in programming.