To Find the Efficient Set for 20 Securities That May

question 20

Multiple Choice

To find the efficient set for 20 securities that may be included in a portfolio, the analyst must calculate covariances numbering

• A) 400.
• B) 190.
• C) 380.
• D) 20.

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Definitions:

Normal Good

A good for which demand increases as consumer income rises, and decreases as consumer income falls.

Income Increase

An income increase refers to a rise in the amount of earnings received by an individual or household, which can affect purchasing power and economic status.

Peanut Butter

Peanut Butter is a food paste or spread made from ground dry roasted peanuts, often containing additional ingredients that modify the taste or texture.

Decrease in Demand

A reduction in the quantity of a good or service that consumers are willing and able to purchase at various prices.