In Equilibrium, the Marginal Price of Risk for a Risky

question 25

Multiple Choice

In equilibrium, the marginal price of risk for a risky security must be

• A)equal to the marginal price of risk for the market portfolio.
• B)greater than the marginal price of risk for the market portfolio.
• C)less than the marginal price of risk for the market portfolio.
• D)adjusted by its degree of nonsystematic risk.

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