Under the Separation Theorem, Investors Should

question 26

Multiple Choice

Under the separation theorem, investors should:

• A) hold the same portfolio of risky assets.
• B) have different optimal portfolios of risky assets.
• C) hold the same percentage of their portfolio in risk-free securities.
• D) borrow at the risk-free rate to achieve a lower risk portfolio.

---

Definitions:

Save Time

The act of using methods or strategies to complete tasks more efficiently, thereby conserving time for other activities.

Keywords

Words or phrases that are crucial to understanding a topic or that are used to optimize search engine results.

Conciseness

The quality of being clear and straightforward in expression, using no more words than necessary.

Redundancies

Unnecessary repetitions in language or the elimination of positions or employees in a workforce.