The Optimal Portfolio for You Will Be

question 82

Multiple Choice

The optimal portfolio for you will be

• A) the one that offers the lowest correlation.
• B) the one that offers the highest returns.
• C) the one that reflects the amount of risk that you are willing to take.
• D) the one that offers the most diversification.

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Definitions:

Revenue Accounts

Accounts that track the income generated by a company from its normal business operations or other activities.

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts.

Prepaid Insurance

An asset account that represents the amount of insurance premium payments made in advance for coverage extending beyond the current accounting period.

Adjusting Entry

Journal entries made in accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.