Macro Events Only Are Reflected in the Performance of the Market

question 3

Multiple Choice

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

• A) the market portfolio has no individual firms.
• B) only macro events are tracked by economists.
• C) unique risks have been diversified away.
• D) firm-specific events would be too numerous to list.

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Definitions:

External Occipital Protuberance

A prominent bump on the back of the skull used as a landmark for aligning the spine and head.

Calcaneal Tendon

Also known as the Achilles tendon, it connects the calf muscles to the heel bone and is crucial for walking, running, and jumping.

Popliteal Fossa

The shallow depression located at the back of the knee joint, containing nerves and blood vessels.

Olecranon Process

The bony prominence of the ulna at the elbow, which forms the point of the elbow and serves as an attachment for muscles.