You Are Graphing the Portfolio Expected Return Against the Portfolio

question 49

Multiple Choice

You are graphing the portfolio expected return against the portfolio standard deviation for a portfolio consisting of two securities. Which one of the following statements is correct regarding this graph?

• A)Risk-taking investors should select the minimum variance portfolio.
• B)Risk-averse investors should select the portfolio with the lowest rate of return.
• C)Some portfolios will be efficient while others will not.
• D)The minimum variance portfolio will have the lowest portfolio expected return of any of the possible portfolios.
• E)All possible portfolios will graph as efficient portfolios.

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Blood Pressure

The pressure exerted by circulating blood upon the walls of blood vessels, indicative of the health of the circulatory system.

Experimental Group

The group in a scientific experiment that receives the treatment or intervention being tested.

Music

An art form and cultural activity involving the creation of works through the organization of sound, rhythm, melody, and harmony.

Productivity

The effectiveness of productive effort, especially in industry, as measured in terms of the rate of output per unit of input.