The Separation Property Refers to the Conclusion That

question 1

Multiple Choice

The separation property refers to the conclusion that

• A) the determination of the best risky portfolio is objective, and the choice of the best complete portfolio is subjective.
• B) the choice of the best complete portfolio is objective, and the determination of the best risky portfolio is objective.
• C) the choice of inputs to be used to determine the efficient frontier is objective, and the choice of the best CAL is subjective.
• D) the determination of the best CAL is objective, and the choice of the inputs to be used to determine the efficient frontier is subjective.
• E) investors are separate beings and will, therefore, have different preferences regarding the risk-return tradeoff.

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