In a World Where the CAPM Holds, Which One of the Following

question 41

Multiple Choice

In a world where the CAPM holds, which one of the following is not a true statement regarding the capital market line?

• A) The capital market line always has a positive slope.
• B) The capital market line is also called the security market line.
• C) The capital market line is the best-attainable capital allocation line.
• D) The capital market line is the line from the risk-free rate through the market portfolio.

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Definitions:

Agoraphobia

A type of anxiety disorder characterized by an intense fear of being in situations where escape might be difficult or help might not be available, especially in open or public places.

Acrophobia

An intense fear of heights, often leading to significant anxiety, avoidance behavior, and impairment in daily tasks or activities.

Barophobia

An irrational fear of gravity or the feeling experienced in situations where gravity might be absent or significantly altered.

Phobias

Irrational and intense fears of objects, situations, or activities that pose little to no actual danger, often leading to avoidance behaviors.