The SML Is Valid for ________, and the CML Is

question 76

Multiple Choice

The SML is valid for ________, and the CML is valid for ________.

• A) only individual assets; well-diversified portfolios only
• B) only well-diversified portfolios; only individual assets
• C) both well-diversified portfolios and individual assets; both well-diversified portfolios and individual assets
• D) both well-diversified portfolios and individual assets; well-diversified portfolios only

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Definitions:

Categorical Syllogism

A form of deductive argument that consists of three categorical propositions (a major premise, a minor premise, and a conclusion) that relates three different terms.

Major Premise

In a syllogism, the broader statement that provides the initial argument from which a conclusion is derived.

Categorical Proposition

A claim that validates or contradicts information about every member within a classification.

Distinct Term(s)

Refers to terms in a logical argument or proposition that are recognizably different from each other.