a.

b.

According to the Capital Asset Pricing Model (CAPM), the market portfolio: includes all risky assets invested in equal amounts. contains only systematic risk. O is perfectly positively correlated with other portfolios on the CML. Which of the following statements most likely represents a characteristic of the money-weighted rate of return? It removes the effects of timing and amount of withdrawals and addition to the portfolio It reflects the compound rate of growth of one unit of currency invested over a stated measurement period. It is the internal rate of return on a portfolio, taking account of all cash flows