An Efficient Set of Portfolios Is

question 7

Multiple Choice

An efficient set of portfolios is:

• A)the dominant portion of the opportunity set.
• B)only the maximum return portfolio.
• C)only the minimum variance portfolio.
• D)the complete opportunity set.
• E)the portion of the opportunity set below the minimum variance portfolio.

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Definitions:

Quantum Meruit

A legal principle meaning "as much as he has earned," used to determine compensation based on the value of services rendered when no contract price is agreed upon.

Valid Contract

A legally binding agreement between parties that meets all required elements, such as offer, acceptance, consideration, and lawful purpose.

Eliminates Need

Removes the requirement or necessity for something, making it unnecessary.

Valid Offer

A proposal made in terms which are clear enough to be accepted and form a legally binding contract.