An Efficient Portfolio 1. Maximizes Risk for a Given Return

question 14

Multiple Choice

An efficient portfolio
1. maximizes risk for a given return
2. minimizes risk for a given return
3. maximizes return for a given level of risk
4. minimizes return for a given level of risk

• A)1 and 3
• B)1 and 4
• C)2 and 3
• D)2 and 4

---

Definitions:

Language Used

The specific words, terms, and phrases employed in communication or documentation, which can influence interpretation and understanding.

Surrounding Circumstances

The context or conditions existing at the time of an action or event, often considered in legal interpretations, negotiations, or contract formations.

Promisor

The party in a contract who makes a promise to perform an obligation to the promisee.

Noncompete Provision

A clause in a contract that prohibits an individual from entering into or starting a similar profession or trade in competition against another party, usually the employer, for a certain period of time.