Multiple Choice
Which of the following statements is correct?
A) If international financial markets are integrated, the market portfolio in the CAPM formula represents the world market portfolio.
B) If international financial markets are integrated, the market portfolio in the CAPM formula represents the domestic market portfolio.
C) If international financial markets are divided, the market portfolio in the CAPM formula represents the domestic market portfolio.
D) If international financial markets are divided, the market portfolio in the CAPM formula represents the world market portfolio.
Correct Answer:
Verified
Correct Answer:
Verified
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