The market portfolio consists of all
A) Toronto Stock Exchange stocks.
B) High grade stocks and bonds.
C) Stocks and bonds.
D) Canadian and non-Canadian. 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 available in the market. This includes not just stocks and bonds, but also real estate, commodities, and any other assets that carry risk and provide a potential return. It's a theoretical construct used to model the performance of an average or total investment in the market.

The Market Portfolio Consists of All