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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