Which of the Following Statements Is Most Correct

question 22

Multiple Choice

Which of the following statements is most correct?

• A)An inefficient portfolio maximizes return for a given level of risk,or minimizes risk for a given level of return.
• B)A single asset is called a portfolio
• C)The goal of an efficient portfolio is to maximize risk for a given level of return.
• D)Combining positively correlated assets having the same expected return results in a portfolio with the same level of expected return and a lower level of risk.
• E)none of the above

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Definitions:

Aggregate Demand Curve

A graphical representation that shows the relationship between the overall price level in the economy and the total demand for goods and services at that price level.

Velocity of Money

The rate at which money is exchanged from one transaction to another, and how much a unit of currency is used in a given period.

ATM Machines

Automated Teller Machines where individuals can perform financial transactions, such as cash withdrawals, deposits, and fund transfers, without the need for direct interaction with bank staff.

Credit Cards

Financial instruments that allow users to borrow funds up to a pre-set limit for purchases or cash advances, with the expectation of paying back the borrowed amount over time.