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

question 47

Multiple Choice

Assume that stock market returns do not resemble a single-index structure.An investment fund analyzes 132 stocks in order to construct a mean-variance efficient portfolio constrained by 132 investments.They will need to calculate ____________ covariances.

• A)100
• B)132
• C)4,950
• D)8,646
• E)none of the above

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Can refer to either the maximum distance an aircraft can travel without refueling or the maximum number of passengers or cargo an aircraft can carry.

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A measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

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