Determine Which One of These Three Portfolios Dominates Another

question 96

Multiple Choice

Determine which one of these three portfolios dominates another. Name the dominated portfolio and the portfolio that dominates it. Portfolio Blue has an expected return of 14 percent and risk of 19 percent. The expected return and risk of portfolio Yellow are 15 percent and 18 percent; and for the Purple portfolio are 16 percent and 21 percent.

• A) Portfolio Blue dominates portfolio Yellow.
• B) Portfolio Yellow dominates portfolio Blue.
• C) Portfolio Blue dominates Portfolio Purple.
• D) Portfolio Purple dominates portfolio Yellow.

---

Definitions:

Multi-Directional Development

The concept that human development occurs in various directions, indicating gains, losses, growth, and decline across the lifespan.

Discontinuity

A break or gap in a sequence, process, or in continuous development, often leading to a significant change or variation.

Larva

The immature, wingless, and often wormlike feeding stage of an insect that undergoes complete metamorphosis.

Multi-Contextual

Pertaining to or involving multiple contexts or environments, emphasizing the variation of experiences across different settings.