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:

Non-governmental Organizations

Independent organizations not affiliated with government bodies, typically working towards social, environmental, or humanitarian goals.

Global Middle Class

A socio-economic term referring to individuals who fall in between the working class and the upper class within a global context, often characterized by stable income, education, and the ability to afford non-essential goods and services.

Halo Effect

A cognitive bias where the perception of one positive characteristic of a person or entity influences the overall impression, often leading to unjustified favorable evaluations.

New Product

An item or service that has been recently developed or introduced to the market, aiming to meet consumer demand or open new markets.