You Are Graphing the Portfolio Expected Return Against the Portfolio

question 49

Multiple Choice

You are graphing the portfolio expected return against the portfolio standard deviation for a portfolio consisting of two securities. Which one of the following statements is correct regarding this graph?

• A)Risk-taking investors should select the minimum variance portfolio.
• B)Risk-averse investors should select the portfolio with the lowest rate of return.
• C)Some portfolios will be efficient while others will not.
• D)The minimum variance portfolio will have the lowest portfolio expected return of any of the possible portfolios.
• E)All possible portfolios will graph as efficient portfolios.

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Definitions:

Dreams

Mental experiences that occur during sleep, often involving imaginary events that can be vivid and emotionally charged.

Repressed Animal Instincts

Psychologically hidden or suppressed basic primal urges or desires often considered to stem from the unconscious mind.

Patient

An individual receiving medical care and treatment from healthcare professionals, often within a hospital or clinic setting.

Dream Interpretation

The process of assigning meaning to dreams, often considered a part of psychoanalysis and psychological practice.