If You Were to Completely Diversify Your Portfolio by Purchasing

question 70

True/False

If you were to completely diversify your portfolio by purchasing a portion of every asset in the investment universe, then the expected return of your portfolio is equal to the risk-free rate.

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Definitions:

Control

The power to influence or direct people's behavior or the course of events.

Owners

Individuals or entities that hold legal title or possessory rights to assets or properties.

Exerting Effort

The action of applying physical or mental energy to achieve an objective.

Income

The money received, typically on a regular basis, by a person or household for work or through investments.