What Happens to Portfolios That Cannot Be Dominated

question 12

Multiple Choice

What happens to portfolios that cannot be dominated?

• A)They lie on the efficient frontier.
• B)They are minimum risk portfolios.
• C)They have low correlations.
• D)They have maximum expected returns.

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Definitions:

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account columns to verify that the ledger accounts are correctly balanced.

Ledger Balances

The current totals in ledger accounts, reflecting all transactions up to a given point in time.

Trial Balance

An accounting report that lists the balances of all ledgers accounts to verify that total debits equal total credits.

Ledger

A comprehensive collection of a company’s financial accounts, recording all transactions and financial activities.