An Analyst Determined That for the Past Two Quarters the Risk-Free

question 21

Essay

An analyst determined that for the past two quarters the risk-free rate has exceeded the return on the market portfolio.Does this information disprove the CML?

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Definitions:

Simple Random Sampling

A statistical sampling technique in which each member of a population has an equal chance of being included in the sample.

Streaming Service

A platform that delivers content, such as music, movies, or television shows, over the internet, enabling users to access it on-demand.

College Students

Individuals engaged in post-secondary education at colleges or universities.

Validity

The extent to which a concept, conclusion, or measurement is well-founded and likely corresponds accurately to the real world.