The Market Portfolio Is

question 12

Multiple Choice

The market portfolio is:

• A)a portfolio where the weight on each asset is its market value divided by the market value of all risky assets.
• B)a portfolio which is designed to match certain attributes of target portfolios in a given market.
• C)a portfolio which includes all risky and risk-free assets in the market.
• D)a unique optimal portfolio that gives the highest possible returns for the lowest risk in the market.

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Definitions:

Personal in Nature

Refers to something that is intended for or affects an individual in a private, intimate, or personal capacity.

Assignment

The transfer of rights or property from one party to another.

Creditor Beneficiaries

A creditor beneficiary is a third party that benefits from a contract wherein the promisor agrees to pay the promisee's debt to the third party.

Assignment of Rights

The transfer of legal rights from one party to another, often involving debts or benefits under a contract.