The Dominant Portfolio with the Lowest Possible Risk Measures Is

question 4

Multiple Choice

The dominant portfolio with the lowest possible risk measures is:

• A) the efficient frontier.
• B) the minimum variance portfolio.
• C) the upper tail of the efficient set.
• D) the tangency portfolio.

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Definitions:

Credits Account

A financial record that boosts a liability or equity account, or lowers an asset or expense account.

Drawee

The party in a bill of exchange who is directed to pay the specified amount, typically a bank.

Co-signer

An individual who signs a loan or credit application with another person, promising to pay the debt if the primary borrower does not.

Drawer

In financial transactions, the person who writes or the entity issuing a bill of exchange, cheque, or draft.