If an Investor Has a Portfolio That Has Constant Proportions

question 37

Multiple Choice

If an investor has a portfolio that has constant proportions in T-bills and the market portfolio, the portfolio's characteristic line will plot as a line with ___________. If the investor can time bull markets, the characteristic line will plot as a line with ___________.

• A) a positive slope; a negative slope
• B) a negative slope; a positive slope
• C) a constant slope; a negative slope
• D) a negative slope; a constant slope
• E) a constant slope; a positive slope

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Definitions:

Harm Reduction Programs

Initiatives aimed at minimizing the negative consequences associated with certain behaviors, such as drug use or sexual activity, without necessarily stopping the behavior.

Substance Use

involves the consumption of drugs or alcohol, especially in a way that is illegal or harmful.

Underage Drinking

The act of consuming alcohol by individuals below the legal drinking age, which poses risks to their health, academic performance, and legal standing.

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Individuals who are not yet considered adults for the purposes of determining legal responsibility or eligibility for certain activities, typically under the age of 18.