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Which Statement Is True Regarding the Market Portfolio

Question 97

Multiple Choice

Which statement is true regarding the market portfolio?


A) It includes all publicly traded financial assets.
B) It lies on the efficient frontier.
C) All securities in the market portfolio are held in proportion to their market values.
D) It is the tangency point between the capital market line and the indifference curve.
E) A,B,and C are true.

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