A Portfolio Is Efficient If Which of the Following Is

question 67

Multiple Choice

A portfolio is efficient if which of the following is true?

• A) For a given standard deviation, there is no other portfolio with a higher expected return.
• B) For a given expected return, there is no other portfolio with a lower standard deviation.
• C) For a given expected return, the correlation coefficient is equal to +1.0.
• D) All of these are correct.

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Definitions:

Law Firm

A business entity formed by one or more lawyers to engage in the practice of law, offering services such as legal advice and representation.

Advertising Costs

Expenses associated with promoting products services, including media space rentals, production costs, and agency fees.

Product Costs

The total costs associated with manufacturing a product, including direct labor, direct materials, and manufacturing overhead.

Opportunity Costs

The advantages forgone by selecting one option instead of another.