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

question 39

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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.


Definitions:

Geometry

The branch of mathematics concerning the properties and relations of points, lines, surfaces, solids, and higher dimensional analogs.

Alkene

Unsaturated hydrocarbons with at least one double bond between carbon atoms, exhibiting properties like addition reactions.

(Z)-2-Chloro-4-Ethylhex-2-Ene

A geometric isomer of an organic compound characterized by a specific arrangement of atoms, including a chloride and ethyl group.

(Z)-1-Chloro-1-Fluoro-1-Butene

A geometric isomer of a chlorofluorinated butene, characterized by having the chlorine and fluorine on the same side of the double bond.

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