The error caused by NOT using the true market portfolio has become known as the
A) portfolio deviation.
B) CAPM shift.
C) benchmark error.
D) market error.
E) beta error.

Question

Quizplus · Accepted Answer

The error caused by NOT using the true market portfolio is commonly known as benchmark error, which refers to the discrepancy between the performance of an investment and its benchmark index. The other options are not commonly associated with this particular error.

The Error Caused by NOT Using the True Market Portfolio