Using a One-Factor Model to Develop the Efficient Set of Portfolios

question 30

Multiple Choice

Using a one-factor model to develop the efficient set of portfolios eliminates the need to estimate

• A) expected returns for each security.
• B) covariances for each pair of securities.
• C) the sensitivity of each security.
• D) the riskfree return.

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Definitions:

In-Person Conversations

Direct interactions between individuals in the same physical space, often considered more personal and engaging than other forms of communication.

Nonverbal Cues

Communication signals that do not involve words, such as body language, gestures, and facial expressions.

Oral, In-Person

Communication that occurs through spoken words in a face-to-face setting.

Vocal Inflection

The variation in pitch, tone, and volume of the voice that can affect the meaning of spoken words.