To Identify the Tangency Portfolio

question 13

Multiple Choice

To identify the tangency portfolio:

• A)we must find the portfolio that has a covariance with each asset that is a constant proportion of the asset's risk premium.
• B)we must find the portfolio that has a covariance with each asset that is a constant proportion of the asset's mean variance.
• C)we must find the portfolio that has a correlation with each asset that is a constant proportion of the asset's standard deviation.
• D)we must find the portfolio that has a covariance with each asset that is a constant proportion of the risk free rate.

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Definitions:

Antipsychotic

A classification of medication primarily used to manage psychosis, including schizophrenic and bipolar disorders, by altering neurotransmitter levels in the brain.

Drug

A substance that, when ingested, injected, inhaled, or absorbed, can alter physiological or psychological functions in living organisms.

Motor Coordination

The ability to execute smooth, accurate, and controlled motor responses, integrating the movement of various body parts.

Dopamine Synapses

The junctions between neurons where the neurotransmitter dopamine is released, playing a key role in the brain's reward system and movement control.