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:

Electrophilic Addition

A type of chemical reaction where an electrophile forms a bond with a nucleophile by adding to a double or triple bond.

Trans-2-Deuteriocyclohexan-1-Ol

A deuterium-labeled cyclohexanol where the deuterium atom is located at the second position in a trans configuration relative to the hydroxyl group.

Cyclohexene

A six-carbon cyclic compound with one double bond, often used as a precursor in organic synthesis.

Electron Flow

The movement of electrons through or between molecules, typically in the context of chemical reactions or electrical circuits.