Which of the following statements is correct? Group of answer choices No one's investment portfolio can be the market portfolio because that would mean one individual owns all of the market. The weights in the market portfolio are determined by dividing one by the total number of stocks. An individual's portfolio can be the market portfolio by holding each stock as a percentage of her portfolio equal to the proportion of its market capitalization to all stocks' market capitalization. Only an ignorant investor would hold the market portfolio instead of picking stocks based on her own research.

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Answer: An individual's portfolio can be the market portfolio by holding each stock as a percentage of her portfolio equal to the proportion of its market capitalization to all stocks' market capitalization

Explanation:

Which of the following statements is correct?

An individual's portfolio can be the market portfolio by holding each stock as a percentage of her portfolio equal to the proportion of its market capitalization to all stocks' market capitalization this is said to be portfolio weights

portfolio weights equation  wi = value of investment i     -adds to 100percent

                                                       total value of portfolio

An individual's portfolio can be the market portfolio by holding each stock as a percentage of her portfolio equal to the proportion of its market capitalization to all stocks' market capitalization.

The portfolio weights could be computed by using the given equation:

[tex]w=\frac{I}{total portfolio value} *100[/tex]

Here, I is the investment value and w is portfolio weightage.

Therefore, the value of stock or investment is divided by the overall value that the portfolio has. Finally, multiply the result by 100 to bring the answer in percentage form.

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