In theory, this is a combination of securities that places the portfolio on the efficient frontier and on a line tangent from the risk-free rate.
A) efficient market
B) market portfolio
C) probability distribution
D) stock market bubble

Question

Quizplus · Accepted Answer

This is referring to the concept of the market portfolio, which represents a diversified portfolio that includes all assets in the market. This portfolio is considered to be on the efficient frontier and on a tangent line from the risk-free rate, making it the optimal portfolio for investors who want to balance risk and return. The other choices (A, C, D) are not applicable to this concept.

In Theory, This Is a Combination of Securities That Places