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

question 85

Multiple Choice

Assume that stock market returns do not resemble 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 _____________ expected returns and ___________ variances of returns.

• A)125; 125
• B)125; 15,625
• C)15,625; 125
• D)15,625; 15,625
• E)None of the options

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