In the Treynor-Black Model, the Weight of Each Analysed Security

question 5

Multiple Choice

In the Treynor-Black model, the weight of each analysed security in the portfolio should be proportional to its ________.

• A)alpha/beta
• B)alpha/residual variance
• C)beta/residual variance
• D)none of the above

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Definitions:

Horseplay

Rough or rowdy play or pranks that often involve physical activity without any intent to cause harm.

Nuclear

Pertaining to the nucleus of an atom or to energy produced by nuclear reactions, as well as relating to the core or central part of something.

Extended

Something that is made longer, further reaching, or more comprehensive than originally.

Polygynous

A mating system where a male has more than one female mate at the same time.