The Treynor-Black Model Is a Model That Shows How an Investment

question 23

Multiple Choice

The Treynor-Black model is a model that shows how an investment manager can use security analysis and statistics to construct

• A) a market portfolio.
• B) a passive portfolio.
• C) an active portfolio.
• D) an index portfolio.
• E) a balanced portfolio.

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Definitions:

Short-Term Memory

A cognitive system with a limited capacity that is responsible for temporarily holding information available for processing.

Long-Term Memory

The type of memory responsible for the storage of information over an extended period, potentially for a lifetime.

Short-Term

Relating to or occurring on a brief or immediate timeframe, often contrasted with long-term.

Procedural

Relating to the prescribed method or established process by which something is done, accomplished, or organized.