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

Question 62

Multiple Choice

Assume that stock market returns do not resemble a single-index structure.An investment fund analyzes 150 stocks in order to construct a mean-variance efficient portfolio constrained by 150 investments.They will need to calculate ____________ covariances.


A) 12
B) 150
C) 22,500
D) 11,175
E) none of the above

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