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

Question 66

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) 250,250

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