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A portfolio management organization analyzes 6 0 stocks and constructs a mean - variance efficient portfolio using only these 6 0 securities . a .
A portfolio management organization analyzes stocks and constructs a meanvariance efficient portfolio using only these
securities
a How many estimates of expected returns, variances, and covariances are needed to optimize this portfolio?
b If one could safely assume that stock market returns closely resemble a singleindex structure, how many estimates would be
needed?
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