If Arbitrage Opportunities Are to Be Ruled Out, Each Well-Diversified

question 11

Multiple Choice

If arbitrage opportunities are to be ruled out, each well-diversified portfolio's expected excess return must be

• A) inversely proportional to the risk-free rate.
• B) inversely proportional to its standard deviation.
• C) proportional to its weight in the market portfolio.
• D) proportional to its standard deviation.
• E) proportional to its beta coefficient.

---

Definitions:

Queer Theorists

Scholars and thinkers who explore issues related to gender, sexuality, identity, and norms through the lens of queer theory.

Nuclear Family

A family unit consisting of two parents and their children (biological or adopted) living together in a household.

Feminists

Individuals who advocate for women's rights on the grounds of political, social, and economic equality to men.

Instrumental Roles

The roles in a family or group centered around providing resources, such as income and safety, often stereotypically associated with males.