Under the Separation Theorem,all Investors Should

question 46

Multiple Choice

Under the separation theorem,all investors should:

• A)hold the same portfolio of risky assets and therefore have the same risk/return combination.
• B)have different optimal portfolios.
• C)have the same portfolio of risky assets and achieve their own risk-return combination through borrowing and lending.
• D)hold the same portfolio of risky assets and the same expected return but at different levels of risk

---

Definitions:

Midterm Elections

Elections held midway through the term of the sitting President of the United States, typically including congressional and local offices.

Personal Responsibility and Work Opportunity Act

A United States federal law enacted in 1996 that aimed to reduce dependency on government benefits, curb welfare spending, and encourage employment and marriage among welfare recipients.

Welfare Benefits

Welfare benefits are government-provided assistance programs aimed at supporting the well-being of citizens, especially those in financial need.

Brady Bill

Legislation signed into U.S. law in 1993 that mandated federal background checks on firearm purchasers in the United States and imposed a five-day waiting period on purchases, until the NICS system was implemented.