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:

Stolen Car

A vehicle that has been taken without the owner's consent, often leading to criminal charges against the person in possession.

Breach of Warranty

The failure to fulfill the terms of a promise or guarantee made about the quality or condition of a product or service.

Mixed Sale

Involves a transaction that includes a combination of taxable and nontaxable items or services, often requiring special considerations for tax calculation and reporting.

Goods with Services

Transactions that involve a combination of physical products and the provision of services as part of the offering.