Macro Events Only Are Reflected in the Performance of the Market

question 62

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 specific 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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The combination of characteristics or qualities that form an individual's distinctive character and behavioral patterns.

Friendly and Conventional

Descriptors often used in personality psychology to categorize individuals who are generally warm, cooperative, and prefer following traditional norms and routines.

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The practice of being kind and understanding towards oneself, especially in instances of failure or mistake.

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