In Equilibrium, the Marginal Price of Risk for a Risky

Multiple Choice

In equilibrium, the marginal price of risk for a risky security must be

A) equal to the marginal price of risk for the market portfolio.
B) greater than the marginal price of risk for the market portfolio.
C) less than the marginal price of risk for the market portfolio.
D) adjusted by its degree of nonsystematic risk.
E) None of the options is true.