In Practice,the Market Portfolio Is Often Represented By

question 85

Multiple Choice

In practice,the market portfolio is often represented by:

• A) a portfolio of U.S. Treasury securities.
• B) a diversified stock market index.
• C) an investor's mutual fund portfolio.
• D) the historic record of stock market returns.

---

Definitions:

Sample Size

The number of observations or individuals in a subset of a population selected for a particular study.

Measurement Errors

Discrepancies between the observed values and the true values, which can arise from various sources in data collection.

Reliable

Reliable refers to the consistency of a measure or process over time. In research, it means that the results of a study or the performance of an instrument are consistent and can be replicated under similar conditions.

Test-Retest

A method of measuring the reliability of a test by administering the same test to the same subjects at two points in time and comparing the results.