Macro Events Only Are Reflected in the Performance of the Market

question 46

Multiple Choice

Macro events only are reflected in the performance of the market portfolio because:

• A) the market portfolio contains only risk-free securities.
• B) only macro events are tracked by economists.
• C) the unique risks have been diversified away.
• D)the firm-specific events would be too numerous to quantify.

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Definitions:

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Behaviors or outlooks that reflect a positive, optimistic view of circumstances, events, or individuals.

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