To Determine the Optimal Risky Portfolio in the Treynor-Black Model

question 19

Multiple Choice

To determine the optimal risky portfolio in the Treynor-Black model, macroeconomic forecasts are used for the _________, and composite forecasts are used for the __________.

• A) passive index portfolio; active portfolio
• B) active portfolio, passive index portfolio
• C) expected return; standard deviation
• D) expected return ; beta coefficient
• E) alpha coefficient; beta coefficient

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Definitions:

Combining Form

In linguistics, a form of a word that combines with another word or form to create a new word or expression.

Xer/o

is a prefix in medical terminology that means "dry," often used to describe conditions related to dryness.

Hem/o

A prefix used in medical terms to refer to blood.

Hepat/o

A prefix in medical terminology referring to the liver.