Exhibit 8.5
Use the Information Below for the Following Problem(S)
$$\begin{array} { c c c }
\text { Partiolio } & \text { Expected Return } & \text { Standard Devintion } \
\hline \text { A } & 9.8 \% & 14.0 \% \
\text { B } & 6.7 \% & 9.8 \% \
\text { C } & 11.2 \% & 18.5 \%
\end{array}$$
-Refer to Exhibit 8.5.Which of the three portfolios are most likely to be the market portfolio?
A) Portfolio A
B) Portfolio B
C) Portfolio C
D) All of the portfolios are equally likely to be the market portfolio
E) There is insufficient information to differentiate between the three portfolios

Question

Exhibit 8.5
Use the Information Below for the Following Problem(S)
 $$\begin{array} { c c c } 
\text { Partiolio } & \text { Expected Return } & \text { Standard Devintion } \
\hline \text { A } & 9.8 \% & 14.0 \% \
\text { B } & 6.7 \% & 9.8 \% \
\text { C } & 11.2 \% & 18.5 \%
\end{array}$$
-Refer to Exhibit 8.5.Which of the three portfolios are most likely to be the market portfolio?
A) Portfolio A
B) Portfolio B
C) Portfolio C
D) All of the portfolios are equally likely to be the market portfolio
E) There is insufficient information to differentiate between the three portfolios

Quizplus · Accepted Answer

Portfolio A is the most efficient portfolio in terms of return per unit of risk.Therefore,A is the most likely candidate for being on the Efficient Frontier as the market portfolio.

Exhibit 85 Use the Information Below for the Following Problem(S)

Exhibit 85
Use the Information Below for the Following Problem(S)