MNB Capital: Implementing Capital Asset Pricing Theory for Equity Investments

Factors for Constructing Market Portfolio

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Question

MNB Capital manages money for high net worth individuals located within the United States. MNB's disciplined investment approach selects a small number of domestic equities selling at significant discounts to book value. If MNB wanted to implement the capital asset pricing theory to evaluate equity investments, which of the following is least appropriate as an input to construct the market portfolio?

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A. B. C.

A

To construct