Join the growing community of curious minds on IDNLearn.com and get the answers you need. Discover prompt and accurate responses from our experts, ensuring you get the information you need quickly.
Why does the market portfolio include all risky assets?
Under the CAPM, all investors hold the market portfolio because it is the optimal risky portfolio. Because it produces the highest attainable return for any given risk level, all rational investors will seek to be on the straight line tangent to the efficient set at the steepest point, which is the market portfolio. Branliest would be nice (:
We appreciate every question and answer you provide. Keep engaging and finding the best solutions. This community is the perfect place to learn and grow together. Your questions deserve accurate answers. Thank you for visiting IDNLearn.com, and see you again for more solutions.
