Determine Which One of These Three Portfolios Dominates Another

question 29

Multiple Choice

Determine which one of these three portfolios dominates another. Name the dominated portfolio and the portfolio that dominates it. Portfolio Blue has an expected return of 14 percent and risk of 19 percent. The expected return and risk of portfolio Yellow are 15 percent and 18 percent; and for the Purple portfolio are 16 percent and 21 percent.

• A)Portfolio Blue dominates portfolio Yellow.
• B)Portfolio Yellow dominates portfolio Blue.
• C)Portfolio Purple dominates portfolio Blue.
• D)Portfolio Purple dominates portfolio Yellow.

---

Definitions:

Probability Model

A mathematical representation of a random process, describing all possible outcomes and their associated probabilities.

Ace Of Hearts

A playing card in the heart suit, regarded as either the highest or lowest depending on the game.

Comma Splice

A grammatical error involving the incorrect use of a comma to join two independent clauses without a conjunction.

PBS

Public Broadcasting Service, a non-commercial, public American television network known for educational and quality programming.