Use the Following Three Statements to Answer This Question

question 7

Multiple Choice

Use the following three statements to answer this question:

• A) I, II, and III are correct.
• B) I, II, and III are incorrect.
• C) I and III are correct and II is incorrect.
• D) I is incorrect, II and III are correct.
• I.The CML must always be upward sloping,and it predicts required returns.
• II.The CML is based on expected rates of return,so it is ex post.
• III.The CML slope is the Sharpe ratio.

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Definitions:

Communitarianism

A social philosophy emphasizing the importance of community in the functioning of political life, often valuing community goals over individual ones.

Equality of Condition

A social state in which people have the same status in certain respects, including civil rights, freedom of speech, property rights, and equal access to social goods and services.

Equality of Opportunity

The principle that all individuals should have an equal chance to pursue their own goals and interests, typically referring to non-discrimination in access to education, employment, and other resources.

Equality of Opportunity

The principle that all individuals should have the same chance to succeed, without discrimination based on background, race, gender, or other personal characteristics.