Stock ownership by the government

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You are considering an investment in the investable market portfolio. In that case, how much should you invest in a country's stock market where the stock ownership by the government, insiders, and family trusts is high (e.g., Germany)?

A.You should expect to invest more (relative to overall size of the economy).

B.You should expect to invest less (relative to overall size of the economy)

C.You should expect in proportion to the overall size of the economy (GDP).

D.Not relevant, as you should only invest in the market portfolio containing domestic stocks (e.g., U.S. stocks for a U.S. investor)

Reference no: EM132509795

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