The Portfolio with the Lowest Standard Deviation for Any Risk

question 51

Multiple Choice

The portfolio with the lowest standard deviation for any risk premium is called the_______.

• A) CAL portfolio
• B) efficient frontier portfolio
• C) global minimum variance portfolio
• D) optimal risky portfolio

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Definitions:

Escalation Commitment

The phenomenon where people continue to invest time, money, or effort into a failing project due to the cumulative prior investment, despite new evidence suggesting that the cost of continuing the project outweighs the expected benefit.

Betamax Systems

An early video cassette recording format that was eventually overshadowed by VHS.

Three-Tiered Model

A framework that categorizes something into three levels or layers, often used to describe levels of intervention, service, or analysis.

Literacy

The ability to read and write, or having knowledge in a specific area.