The SML Is Valid for ________, and the CML Is

question 76

Multiple Choice

The SML is valid for ________, and the CML is valid for ________.

• A) only individual assets; well-diversified portfolios only
• B) only well-diversified portfolios; only individual assets
• C) both well-diversified portfolios and individual assets; both well-diversified portfolios and individual assets
• D) both well-diversified portfolios and individual assets; well-diversified portfolios only

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Definitions:

Behavior

Actions or reactions of an organism, often in response to external stimuli, observed and measurable.

Introspection

The examination of one's own conscious thoughts and feelings, used in psychology as a method of exploring the workings of the mind.

Wilhelm Wundt

Wilhelm Wundt, often considered the father of modern psychology, founded the first psychological laboratory in Leipzig, Germany, marking the formal beginning of psychology as an experimental and scientific discipline.

Psychological Sensation

A subjective experience arising from the mind, often in response to external stimuli.