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.

---

Definitions:

Work Sampling

A technique used to estimate the proportion of time spent by workers on different tasks by observing them at random intervals.

Driving Abilities

the skills and capabilities needed to operate a vehicle safely and efficiently on the road.

Interviewers

Individuals who ask questions in various contexts, such as job interviews, surveys, or research, to gather information or assess qualifications.

Buyers

Individuals or entities that purchase goods or services for personal use or for resale.