A Portfolio That Belongs to the Markowitz Efficient Set of Portfolios

question 63

Multiple Choice

A portfolio that belongs to the Markowitz efficient set of portfolios will have which one of the following characteristics? Assume the portfolios are comprised of five individual securities.

• A)the lowest return for any given level of risk
• B)the largest number of potential portfolios that can achieve a specific rate of return
• C)the largest number of potential portfolios that can achieve a specific level of risk
• D)a positive rate of return and a zero standard deviation
• E)the lowest risk for any given rate of return

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