If a Market Proxy Portfolio Consistently Beats All Professionally-Managed Portfolios

question 2

Multiple Choice

If a market proxy portfolio consistently beats all professionally-managed portfolios on a risk-adjusted basis, it may be concluded that

• A)the CAPM is valid.
• B)the market proxy is mean/variance efficient.
• C)the CAPM is invalid.
• D)the CAPM is valid and the market proxy is mean/variance efficient.

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Definitions:

Neural Circuits

Networks of neurons interconnected to perform specific functions within the nervous system.

Glial Cells

Cells in the nervous system that support, protect, and nourish neurons, playing a key role in maintaining homeostasis and forming myelin.

Brain Tissue

Comprises various cells, including neurons and glial cells, responsible for processing and transmitting information throughout the body.

Huntington Disease

A genetic disorder characterized by the progressive breakdown of nerve cells in the brain, leading to movement disorders, cognitive decline, and psychiatric symptoms.