In a Simple CAPM World Which of the Following Statements

question 50

Multiple Choice

In a simple CAPM world which of the following statements is (are) correct?
I. All investors will choose to hold the market portfolio, which includes all risky assets in the world.
II. Investors' complete portfolio will vary depending on their risk aversion.
III. The return per unit of risk will be identical for all individual assets.
IV. The market portfolio will be on the efficient frontier, and it will be the optimal risky portfolio.

• A) I, II, and III only
• B) II, III, and IV only
• C) I, III, and IV only
• D) I, II, III, and IV

---

Definitions:

Examples

Specific instances or cases used to illustrate or explain a rule, fact, or phenomenon.

Sex And Gender

differentiate between biological differences (sex) and the roles, behaviors, and identities society ascribes to people (gender).

Ideal Body Image

A socially constructed concept of what is considered the most desirable or perfect body appearance, often influenced by media and cultural norms.

Mass Media

Diverse media technologies intended to reach a large audience via mass communication, examples include newspapers, television, and the Internet.