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 _____________ expected returns and ___________ variances of returns.
A) 125; 125
B) 125; 15,625
C) 15,625; 125
D) 15,625; 15,625
E) None of the options are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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