A Portfolio Is Efficient If No Other Asset or Portfolios

question 42

True/False

A portfolio is efficient if no other asset or portfolios offer higher expected return with the same (or lower) risk or lower risk with the same (or higher) expected return.

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Definitions:

Ingrained Stereotypes

Deeply embedded preconceived and oversimplified images or ideas of particular types of people or things.

Tacit Knowledge

Knowledge that is difficult to transfer to another person by writing it down or verbalizing it, often gained through personal experience.

Explicit Knowledge

Information or knowledge that is easily articulated, codified, accessed, and verbalized, typically found in documents or databases.

Observation

The action or process of closely monitoring or noting something or someone in order to gain information.