In Theory, Which of These Is a Combination of Securities

question 41

Multiple Choice

In theory, which of these is a combination of securities that places the portfolio on the efficient frontier and on a line tangent from the risk-free rate?

• A) efficient market
• B) market portfolio
• C) probability distribution
• D) stock market bubble

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Definitions:

Verbal Discussion

involves exchanging thoughts, ideas, or emotions through spoken words, aiming to reach a mutual understanding or decision.

Outsider Bias

The tendency to favor persons outside one's group, often overestimating their qualifications or abilities, usually in comparison to insiders.

Knowledge Valuation

The process of assessing the value of knowledge assets within an organization, often to support decision-making or investment in knowledge management.

Organizational Incentives

Motivators provided by an organization to encourage desired behaviors, performance, or attitudes among its members.