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.

---

Definitions:

Consumer Sovereignty

The concept that consumers' preferences and decisions dictate the production of goods and services in an economy, emphasizing the power of consumer choice.

Market Economy

An economic system where supply and demand from private enterprise make all the economic decisions.

Economic Profit

The split between entirety of income and the full scope of expenditures, considering both clear and implicit financial obligations.

Production Techniques

Methods and processes used in the creation of goods and services, influenced by technology, labor skills, and resource availability.