If Investors Possess Homogeneous Expectations Over All Assets in the Market

question 80

Multiple Choice

If investors possess homogeneous expectations over all assets in the market portfolio, when riskless lending and borrowing is allowed, the market portfolio is defined to:

• A)be the same portfolio of risky assets chosen by all investors.
• B)have the securities weighted by their market value proportions.
• C)be a diversified portfolio.
• D)All of the above.
• E)None of the above.

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Definitions:

Tender Of Performance

An offer by one party to perform their obligations under a contract, in accordance to the contract's terms.

Conditional

Depending on or subject to one or more conditions or requirements being met; not absolute.

Unconditionally Offers

The act of making an offer without attaching any conditions or stipulations.

Discharges

The release, settlement, or extinguishment of a duty, liability, or obligation.