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:

Mental Disabilities

A range of conditions that affect mood, thinking, and behavior, which may impact day-to-day functioning and social interaction.

Health Problems

Issues or conditions that negatively impact an individual's physical or mental wellbeing.

Racial-Ethnic Families

Family units formed by individuals of different racial or ethnic backgrounds, focusing on their cultural practices, heritage, and lineage.

Economic Recessions

Periods of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.