To Develop a Portfolio That Provides the Best Return Possible

question 33

Multiple Choice

To develop a portfolio that provides the best return possible with a minimum risk, the linear programming model will have an objective function which

• A) minimizes the maximum risk.
• B) minimizes total risk.
• C) maximizes return and minimizes risk.
• D) maximizes the minimum return.

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Definitions:

Functionally Autonomous

A term by psychologist Gordon Allport referring to motives or behaviors that continue independently even after the original reasons for them have changed.

Reflexes

Involuntary and automatic responses of the body to certain stimuli, serving as basic survival mechanisms.

Fixations

Persistent focuses or attachments to behaviors, concepts, or stages of development that were significant in early childhood, possibly leading to psychological issues.

Propriate Motives

Motivations that are integral to an individual's self-concept and are related to the goals of maintaining self-identity and personal significance.