Consider the Treynor-Black Model

question 26

Multiple Choice

Consider the Treynor-Black model. The alpha of an active portfolio is 1%. The expected return on the market index is 11%. The variance of return on the market portfolio is 6%. The nonsystematic variance of the active
Portfolio is 2%. The risk-free rate of return is 4%. The beta of the active portfolio is 1.1. The optimal proportion
To invest in the active portfolio is

• A) 45%.
• B) 25%.
• C) 50%.
• D) 100%.

Comprehend the nuanced differences in hypothesis testing procedure and interpretation based on different scenarios and test designs.

Understand the concepts of electron density and its relationship with electron waves.

Identify and count π (pi) bonds in given molecular structures.

Determine the type of molecular orbitals (sigma or pi) resulting from atomic orbital interactions.

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