Question: When we select a measure of portfolio performance, why do we want this measure to be insensitive to the risk of the investment? What does

  1. When we select a measure of portfolio performance, why do we want this measure to be insensitive to the risk of the investment?

  1. What does it mean to say that the market portfolio is efficient? What approach has studys like Black, Jensen, and Scholes taken to test whether the market portfolio is efficient?

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