A Portfolio Which Lies Below the Efficient Frontier Is Described

question 52

Multiple Choice

A portfolio which lies below the efficient frontier is described as:

• A) optimal.
• B) unattainable.
• C) dominant.
• D) dominated.

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Definitions:

Sequential Method

A procedure used in cost accounting to allocate service department costs to producing departments in a specific sequence.

Support Department Costs

Costs associated with the functions that assist the operational activities of a company, including HR, IT, and maintenance services, indispensable for production but not part of the direct manufacturing process.

Sequential Method

A process approach where tasks or operations are performed one after another in a specific order.

ABC

Activity-Based Costing, a method of assigning overhead and indirect costs to specific products or activities based on their use of resources.