The _____ portfolio is a portfolio consisting of all securities in which the proportion invested in each security corresponds to its relative market value.

Question

Quizplus · Accepted Answer

The market portfolio is a portfolio that includes all securities in the market, and the proportion invested in each security is based on its market value. It is often used as a benchmark for evaluating the performance of individual portfolios and serves as the basis for the Capital Asset Pricing Model (CAPM). The other answer choices are not applicable to the definition given.

The _____ Portfolio Is a Portfolio Consisting of All Securities