he main insight of modern portfolio theory is that Multiple Choice the optimal portfolio of risky assets does not depend on the risk preferences of the investors. small stocks offer higher average returns than large stocks. all of the above. investors who are more risk averse will overweight stocks with lower standard deviations. all investors will hold the same mix of the market portfolio and the risk-free asset.
he main insight of modern portfolio theory is that Multiple Choice the optimal portfolio of risky assets does not depend on the risk preferences of the investors. small stocks offer higher average returns than large stocks. all of the above. investors who are more risk averse will overweight stocks with lower standard deviations. all investors will hold the same mix of the market portfolio and the risk-free asset.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:The main insight of modern portfolio theory is that
Multiple Choice
the optimal portfolio of risky assets does not depend on the risk preferences of the investors.
small stocks offer higher average returns than large stocks.
all of the above.
investors who are more risk averse will overweight stocks with lower standard deviations.
all investors will hold the same mix of the market portfolio and the risk-free asset.
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