An Efficient Portfolio Is a Portfolio That Does Which One

question 30

Multiple Choice

An efficient portfolio is a portfolio that does which one of the following?

• A) offers the highest return for the lowest possible cost
• B) provides an evenly weighted portfolio of diverse assets
• C) eliminates all risk while providing an expected positive rate of return
• D) lies on the vertical axis when graphing expected returns against standard deviation
• E) offers the highest return for a given level of risk

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Definitions:

Business

An organization or enterprising entity engaged in commercial, industrial, or professional activities.

Social Sciences

A branch of science that deals with the study of societies and the relationships among individuals within those societies.

Technology

Application of scientific knowledge for practical purposes, especially in industry and our daily lives, encompassing devices, systems, and methods.

APA Style

A set of guidelines for writing and formatting academic documents, developed by the American Psychological Association.