The Efficient Frontier Portfolios Are

question 21

Multiple Choice

The efficient frontier portfolios are

• A) portfolios that risk adverse investors will select.
• B) portfolios where all the market risk is diversified away.
• C) portfolios where the correlation among assets is 0.0.
• D) portfolios that dominate all others.

---

Definitions:

Voting Rights

The rights of shareholders to vote on corporate matters, typically exercised at annual meetings.

Fixed Dividend

A type of dividend payment on preferred stock that remains constant and does not fluctuate with the earnings of the company.

Treasury Stock

Shares that were once in circulation but have been bought back by the issuing company, reducing the amount of outstanding stock on the open market.

Common Shares

Equity securities that represent ownership in a company; holders may vote on corporate matters and receive dividends.