Select the Correct Statement Regarding the Market Portfolio.It

question 8

Multiple Choice

Select the correct statement regarding the market portfolio.It:

• A)is readily and precisely observable.
• B)is a risky portfolio.
• C)is the lowest point of tangency between the risk-free rate and the efficient frontier.
• D)should be composed of stocks or bonds.

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Definitions:

Salespeople

Individuals who are responsible for selling products or services, often working on commission and representing a company in dealings with customers.

Pearson Correlation

A measure of the linear correlation between two variables, giving a value between -1 and 1 where 1 implies a perfect positive linear relationship, -1 implies a perfect negative linear relationship, and 0 implies no linear correlation.

Regression Line

A linear representation that best fits the distribution of data points in scatter plotting, predicting the relationship between dependent and independent variables.

Coefficient Of Determination

A statistical measure, often denoted as R^2, that represents the proportion of the variance in the dependent variable predictable from the independent variable(s) in a regression analysis.