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

Question 24

Multiple Choice

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 ____________ covariances.


A) 125
B) 7,750
C) 15,625
D) 11,750

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