You Want to Create the Best Portfolio That Can Be

question 44

Multiple Choice

You want to create the best portfolio that can be derived from two assets. Which one of the following will help you identify that portfolio?

• A)highest portfolio beta
• B)market equivalent level of risk
• C)highest possible rate of return
• D)Treynor-minimal portfolio
• E)Sharpe-optimal portfolio

Understand the dynamics and economic implications of off-shoring and global trade balance.

Identify the major exporters globally and understand the shift in global economic power.

Learn about the principles of opportunity cost in decision-making for individuals and nations.

Acknowledge the social and economic concerns raised by globalization, including environmental, labor, and human rights issues.

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Definitions:

Car Salespeople

Professionals who specialize in selling automobiles, often working in dealerships to assist customers in finding and purchasing new or used vehicles.

Expected Return

The weighted average of all possible returns for an investment, based on the probabilities of each outcome.

Portfolio

A portfolio is a collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including closed-end funds and exchange traded funds (ETFs).

Covariance

A measure that indicates the extent to which two random variables change in tandem.