Consider the Treynor-Black Model

question 33

Multiple Choice

Consider the Treynor-Black model. The alpha of an active portfolio is 1%. The expected return on the market index is 16%. The variance of the return on the market portfolio is 4%. The nonsystematic variance of the active
Portfolio is 1%. The risk-free rate of return is 8%. The beta of the active portfolio is 1.05. The optimal proportion
To invest in the active portfolio is

• A) 48.7%.
• B) 50.0%.
• C) 51.3%.
• D) 100.0%.

Understand the implications of p-values in hypothesis testing.

Differentiate between chi-square tests for independence and goodness-of-fit.

Understand the concept of acidity in organic compounds and how it relates to resonance stabilization.

Ability to draw and interpret the mechanistic steps involved in the synthesis of specific organic compounds.

---

Definitions:

Resale

The act of selling a product or service again, often after it has been bought from the original seller or manufacturer.

Merchandise

Goods that are available for sale in retail, encompassing a wide range of products from clothing to electronics.

Direct Channel

A distribution method where a company sells its products or services directly to consumers, bypassing intermediaries.

Ultimate Consumers

The final users or purchasers of a product or service, typically individuals who buy for personal, family, or household use.