Question: is the answer correct? Problem 3 Assume that stock market returns do not resemble a single index structure. An investment fund analyzes 132 stocks in

is the answer correct? Problem 3 Assume that stock market returns

is the answer correct?

Problem 3 Assume that stock market returns do not resemble a single index structure. An investment fund analyzes 132 stocks in order to construct a mean variance efficient portfolio constrained by 32 investments. They will need to calculate covariances No, of covariances to be calculated ( nn)/2 = |(132) - 132]/2 = (17.424 - 132/2 - 17.292/2 = 8,646

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