The Dominant Portfolio with the Lowest Possible Risk Is

question 72

Multiple Choice

The dominant portfolio with the lowest possible risk is:

• A)the efficient frontier.
• B)the minimum variance portfolio.
• C)the upper tail of the efficient set.
• D)the tangency portfolio.
• E)None of the above.

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Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting liabilities, essentially the net worth from a shareholder's perspective.

Accumulated Depreciation Accounts

Balance sheet accounts representing the total depreciation of a company's fixed assets over their useful lives.

Liability Accounts

These accounts track what a company owes to others, such as loans, accounts payable, mortgages, and other debts.

Adjusting Entry

Journal entries made at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.