A Zero-Investment Portfolio with a Positive Expected Return Arises

question 12

Multiple Choice

A zero-investment portfolio with a positive expected return arises when

• A) an investor has downside risk only.
• B) the law of prices is not violated.
• C) the opportunity set is not tangent to the capital-allocation line.
• D) a risk-free arbitrage opportunity exists.

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Definitions:

White Light

Light that contains all wavelengths of visible light, appearing white to the human eye.

Saturated

In chemistry, refers to a molecule containing no double or triple carbon-carbon bonds, fully "saturated" with hydrogen atoms. In everyday language, it often means completely filled or soaked.

Psychological Dimension

Refers to aspects of an individual's psychological functioning, including thoughts, emotions, behaviors, and mental processes.

Brightness

The perception of how luminous an object appears; the attribute of visual experience by which an area appears to emit more or less light.