Which of the Following Is True About the Market Portfolio

question 361

Multiple Choice

Which of the following is true about the market portfolio?

• A) The expected return of the market portfolio determines the slope of the security market line.
• B) It plots below the security market line.
• C) It has a beta equal to zero.
• D) It consists of all the stocks on the TSX.
• E) It has a different reward to risk ratio than the individual assets in the market.

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Definitions:

Universally

A term indicating applicability or occurrence in every case, everywhere, or for everyone without exception.

Kübler-Ross

A model proposed by Elisabeth Kübler-Ross outlining five stages of grief: denial, anger, bargaining, depression, and acceptance.

Stages Of Death

A concept often referring to the Kubler-Ross model, which includes denial, anger, bargaining, depression, and acceptance as emotional stages experienced by terminally ill patients.

Acceptance

The act of receiving or taking something offered, or the recognition of a new situation or condition without attempting to change it.