According to the separation theorem, all investors should hold
A) as many securities as possible
B) as many uncorrelated securities as possible
C) only the risk-free rate and the market portfolio
D) only two risky portfolios on the efficient frontier

Question

Quizplus · Accepted Answer

The separation theorem states that all investors should hold a combination of the risk-free asset and the market portfolio, regardless of their risk preferences.

According to the Separation Theorem, All Investors Should Hold