The Optimal Portfolio Is Identified at the Point of Tangency

question 112

Multiple Choice

The optimal portfolio is identified at the point of tangency between the efficient frontier and the

• A) highest possible utility curve.
• B) lowest possible utility curve.
• C) middle range utility curve.
• D) steepest utility curve.
• E) flattest utility curve.

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Definitions:

Trustee

A legal entity or person appointed to manage and administer property or assets for the benefit of a third party.

Testamentary Trust

A trust that is created according to the instructions in a will, coming into effect upon the death of the person who created the will.

Administrator of the Estate

An individual appointed by a court to manage and distribute the assets of a deceased person's estate when there is no will.

Revocation

The official cancellation or withdrawal of a decree, decision, or promise.