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.

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Definitions:

Retain Loyal Customers

Strategies and practices aimed at keeping customers who repeatedly buy from or support a business.

Infrequent Customers

Individuals who purchase goods or services from a business irregularly or rarely.

Survey Profitable

A survey method designed to understand the profitability of various aspects of a business, often focusing on customer satisfaction and product/service viability.

Attitudinal Loyalty

Customer loyalty based on positive feelings and attitudes towards a brand rather than on habit or convenience.