Q1. The market portfolio in Capital Market Theory is determined by: A) a line tangent to the efficient frontier, drawn from any point on the expected return axis. B) the intersection of the efficient frontier and the investor's highest utility curve. C) a line tangent to the efficient frontier, drawn from the risk-free rate of return.
Q2. The market portfolio in the Capital Market Theory contains which types of investments? A) All risky assets in existence. B) All risky and risk-free assets in existence. C) All stocks in existence.
Q3. A portfolio to the right of the market portfolio on the capital market line (CML) is created by:
A) holding both the risk-free asset and the market portfolio. B) fully diversifying. C) holding more than 100% of the risky asset.
Q4. Portfolios that represent combinations of the risk-free asset and the market portfolio are plotted on the:
A) capital asset pricing line. B) utility curve. C) capital market line.
Q5. For an investor to move further up the Capital Market Line than the market portfolio, the investor must:
A) borrow and invest in the market portfolio. B) diversify the portfolio even more. C) reduce the portfolio's risk below that of the market.
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发表于 2009-1-22 10:57
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