With a five factor model (assuming uncorrelated factors) and a 30 stock portfolio, how many parameters must be estimated to calculate the expected return and standard deviation of the portfolio How many additional parameter estimates are required if the factors are correlated ...

In order to calculate the expected return and standard devia ...

With a five-factor model (assuming uncorrelated factors) and a 30-stock portfolio, how many parameters must be estimated

Question:

With a five-factor model (assuming uncorrelated factors) and a 30-stock portfolio, how many parameters must be estimated to calculate the and standard deviation of the portfolio? How many additional parameter estimates are required if the factors are correlated?
Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...