The So-Called Market Portfolio Used as a Benchmark in fiNancial

question 113

Multiple Choice

The so-called market portfolio used as a benchmark in financial economics is

• A) the lowest risk portfolio.
• B) the most diversified portfolio.
• C) the portfolio with the highest expected return.
• D) the portfolio with zero systemic risk.

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Definitions:

Depreciation

A method used in accounting to divide the expenditure of a tangible asset over the time it is useful.

Taxes Paid

The total amount of taxes remitted to the government by an individual or organization, including income, sales, and property taxes.

Cash Flow to Stockholders

The amount of cash a company pays out to its shareholders, including dividends and net share buybacks.

Dividends Per Share

The amount of dividends paid out to shareholders per share of the company’s stock.