The APT Requires a Benchmark Portfolio

question 48

Multiple Choice

The APT requires a benchmark portfolio

• A) that is equal to the true market portfolio.
• B) that contains all securities in proportion to their market values.
• C) that need not be well-diversified.
• D) that is well-diversified and lies on the SML.
• E) that is unobservable.

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Definitions:

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A form of exercise that involves aerobic movements performed in shallow water, such as a swimming pool, which is beneficial for fitness and rehabilitation purposes.

Modest Goal

A realistic and achievable objective that requires a reasonable amount of effort to accomplish, without being overly ambitious.

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The discomfort or pain in muscles following strenuous exercise or physical activity, often due to microscopic damage to muscle fibers.

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A residential community designed specifically for seniors, often providing amenities and services tailored to the needs of retired individuals.