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

question 12

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 above

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Definitions:

Biological Risk Factors

Refers to physical and genetic characteristics that increase the likelihood of developing a disease or disorder.

Heart Disease

A range of conditions that affect the heart, including coronary artery disease, arrhythmias, and heart defects.

Computed Tomography

A medical imaging procedure that uses computer-processed combinations of many X-ray measurements taken from different angles to produce cross-sectional images of specific areas of a scanned object, allowing the user to see inside the object without cutting.

Brain-Imaging

The use of various techniques to visualize the structure or function of the brain, including MRI and CT scans.