The Amount That an Investor Allocates to the Market Portfolio

question 16

Multiple Choice

The amount that an investor allocates to the market portfolio is negatively related to I) the expected return on the market portfolio.
II) the investor's risk aversion coefficient.
III) the risk-free rate of return.
IV) the variance of the market portfolio.

• A)I and II.
• B)II and III.
• C)II and IV.
• D)II, III, and IV.

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Definitions:

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An employment timetable that allows variation in work hours, often accommodating personal needs.

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A formal assessment in which an employee’s work performance is evaluated, typically by their supervisor, discussing both strengths and areas for improvement.

Supervisor

An individual in a position of authority who oversees and directs the work of employees or subordinates.