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

question 15

Multiple Choice

Assume that stock market returns do follow a single-index structure.An investment fund analyzes 60 stocks in order to construct a mean-variance efficient portfolio constrained by 60 investments.They will need to calculate ________ estimates of expected returns and ________ estimates of sensitivity coefficients to the macroeconomic factor.

• A)200; 19,900
• B)200; 200
• C)60; 60
• D)19,900; 19.900
• E)None of the options

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Definitions:

Target Market

The group of customers toward which an organization has decided to direct its marketing efforts.

Authority

The power or right to give orders, make decisions, and enforce obedience.

Customer-Oriented

An approach or strategy in business that focuses on creating a positive experience for the customer, prioritizing their needs and satisfaction.

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A strategy or approach focused on providing solutions to problems or meeting specific customer needs rather than on the product itself.