In the Treynor-Black Model,the Weight of Each Analyzed Security in the Portfolio

question 51

Multiple Choice

In the Treynor-Black model,the weight of each analyzed security in the portfolio should be proportional to its __________.

• A) alpha/beta
• B) alpha/residual variance
• C) beta/residual variance
• D) none of the above

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Definitions:

Power Cords

Electrical cables used to connect an appliance or device to the main electricity supply.

Market Wage Rate

The average or standard amount of compensation paid to workers in a specific market or industry for their labor.

Minimum Wage Law

Legislation that sets the lowest hourly wage rate that employers can legally pay their workers.

Employment

The condition of having paid work or the process of hiring someone for a job.