The Efficient Frontier Is Always Along the Left-Most Portion of the Risk-Return

question 80

True/False

The efficient frontier is always along the left-most portion of the risk-return trade-off diagram in which risk is measured on the X-axis and return is measured on the Y-axis.

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Definitions:

Associate

To connect or link in one's mind; to relate one idea or concept with another.

Drive Theories

A group of theories in psychology that suggest humans are motivated by biological drives to achieve certain needs such as hunger or thirst.

Incentive Theories

Psychological models which suggest behavior is motivated by a desire for rewards and avoidance of punishments.

External Stimuli

Elements in the environment that influence behavior or responses, such as light, noise, or temperature.