Discuss Whether the Following Statement Is True or False

question 37

True/False

Discuss whether the following statement is true or false:
If the post-tax form of the CAPM holds,then a tax-free institution should hold the market portfolio.

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Definitions:

Society's Output

This term describes the total amount of goods and services produced by a society or an economy over a specific time frame.

Self-Interest

The motivation of individuals to pursue their own welfare and interests, often considered a fundamental economic driving force.

Market System

An economic system where decisions regarding investment, production, and distribution are based on supply and demand, determining prices of goods and services.

Private Property

Lawful entitlements to own, utilize, and transfer property.