The statement is untrue because the stock's risk premium is twice as large as the risk premium of the market portfolio, not its predicted rate of return.
A market portfolio is a hypothetical collection of investments that comprises every asset type that is accessible to investors, with each asset weighted in proportion to its overall market participation. A market portfolio's expected return is the same as the market's overall expected return.
Using the necessary premise that these assets are infinitely divisible, a market portfolio is a portfolio that consists of a weighted sum of each asset on the market, with weights in the proportions in which they are present on the market.
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