The market portfolio consists of all
A) New York Stock Exchange stocks.
B) high grade stocks and bonds.
C) stocks and bonds.
D) U.S. and non-U.S. stocks and bonds.
E) risky assets.

Question

Quizplus · Accepted Answer

The market portfolio, according to financial theory, particularly the Capital Asset Pricing Model (CAPM), consists of all risky assets, not just stocks and bonds but also real estate, commodities, and other investment vehicles, on a global scale. This includes both U.S. and non-U.S. assets, encompassing a wide range of investment types beyond just stocks and bonds.

The Market Portfolio Consists of All