Assume That Stock Market Returns Do Follow a Single-Index Structure

question 22

Multiple Choice

Assume that stock market returns do follow a single-index structure. An investment fund analyzes 125 stocks in order to construct a mean-variance efficient portfolio constrained by 125 investments. They will need to calculate ________ estimates of expected returns and ________ estimates of sensitivity coefficients to the macroeconomic factor.

• A) 125; 15,225
• B) 15,625; 125
• C) 7,750; 125
• D) 125; 125

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Definitions:

Acute Care

Short-term treatment provided in hospitals for patients suffering from severe injury or illness, an urgent medical condition, or during recovery from surgery.

Chronic Disease

A long-lasting condition that can be controlled but not cured.

Hospice Programs

Care programs focused on providing comfort and support to patients and their families during the end stages of a terminal illness, emphasizing palliative care.

Supportive Care

Medical care given to improve the quality of life for patients with serious health conditions, often focusing on symptom management.