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A portfolio management organization analyzes 66 stocks and constructs a mean-variance efficient portfolio using only these 66 securities. a. How many estimates of expected returns,

A portfolio management organization analyzes 66 stocks and constructs a mean-variance efficient portfolio using only these 66 securities. a. How many estimates of expected returns, variances, and covariances are needed to optimize this portfolio? estimates of expected return

estimates of variances

estimates of covariances

total estimates

b. If one could safely assume that stock market returns closely resemble a single-index structure, how many estimates would be needed?

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