Dominant Portfolios Determine Which One of These Three Portfolios Dominates

question 60

Multiple Choice

Dominant Portfolios Determine which one of these three portfolios dominates another. Name the dominated portfolio and the portfolio that dominates it. Portfolio Blue has an expected return of 14 percent and risk of 19 percent. The expected return and risk of portfolio Yellow are 15 percent and 18 percent, and for the Purple portfolio are 16 percent and 21 percent.

• A) Portfolio Blue dominates Portfolio Yellow
• B) Portfolio Yellow dominates Portfolio Blue
• C) Portfolio Purple dominates Portfolio Blue
• D) Portfolio Purple dominates Portfolio Yellow

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Definitions:

Quantity Of Direct Materials

The amount of raw materials used in the production process that can be directly attributed to the final product.

Standards

Established norms or requirements in various fields that act as guidelines for achieving consistency, quality, and compatibility.

Budgets

A financial plan for a defined period, outlining expected revenues and expenditures.

Overhead Volume

The total overhead costs associated with operating a business, which can include rent, utilities, and other indirect costs.