The Market Portfolio Is the Portfolio of All Risky Investments

question 44

Multiple Choice

The market portfolio is the portfolio of all risky investments held ________.

• A) in descending weights
• B) in ascending weights
• C) in proportion to their value
• D) based on previous year performance

---

Definitions:

Average Increase

The mean amount added over a series of increments, often used to measure growth or inflation over time.

Income Yield

The annual income from an investment divided by the current price of the investment, often expressed as a percentage, indicating the return from dividend payments or interest.

Rental Property

Real estate that is leased or rented out to tenants.

Property Taxes

Taxes assessed by local governments on properties, typically based on property value, to fund various public expenses.