The Optimal Portfolio on the Efficient Frontier for a Given

question 56

Multiple Choice

The optimal portfolio on the efficient frontier for a given investor depends on

• A) the investor's degree-of-risk tolerance.
• B) the coefficient, A, which is a measure of risk aversion.
• C) the investor's required rate of return.
• D) the investor's degree-of-risk tolerance and the investor's required rate of return.
• E) the investor's degree-of-risk tolerance and the coefficient, A, which is a measure of risk aversion.

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Definitions:

Adjusting Entry

A journal entry made in the accounting records at the end of an accounting period to allocate income and expenditure to the appropriate period.

Closing Entry

A journal entry made at the end of an accounting period to transfer the balances of temporary accounts to a permanent account.

Adjusting Entry

An accounting record posted at the closing of a financial period to assign revenues and expenses to the time they were incurred.

Closing Entry

An accounting action that transfers all temporary account balances to permanent accounts at the end of an accounting period, preparing the books for the next period.