The Efficient Set of Portfolios

question 133

Multiple Choice

The efficient set of portfolios:

• A) contains the portfolio combinations with the highest return for a given level of risk.
• B) contains the portfolio combinations with the lowest risk for a given level of return.
• C) is the lowest overall risk portfolio.
• D) Both contains the portfolio combinations with the highest return for a given level of risk; and contains the portfolio combinations with the lowest risk for a given level of return.
• E) Both contains the portfolio combinations with the highest return for a given level of risk; and is the lowest overall risk portfolio.

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Definitions:

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