An Efficient Portfolio Is One That Does Which of the Following

question 42

Multiple Choice

An efficient portfolio is one that does which of the following?

• A)offers the highest return for the lowest possible cost
• B)provides an evenly weighted portfolio of diverse assets
• C)eliminates all risk while providing an expected positive rate of return
• D)lies on the vertical axis when graphing expected returns against standard deviation
• E)offers the highest return for a given level of risk

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Definitions:

Merchandise Inventory

Items that a business possesses with the intention of selling them to consumers.

Accounts Payable

Amounts a company owes to creditors for goods or services that have been bought on credit and are payable within a specified period.

Subsidiary Ledger

A detailed ledger that contains the details of transactions for individual accounts, which then summarize into the general ledger.

Control Account

An account in the general ledger used to summarize and consolidate transactions from multiple subsidiary accounts.