A Portfolio That Plots Below the Minimum Variance Portfolio Is

question 48

Multiple Choice

A portfolio that plots below the minimum variance portfolio is __________.

• A) dominant
• B) inefficient
• C) correlated
• D) optimal
• E) redundant

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Definitions:

Marginal Productivity

The extra output that is produced by using one more unit of a factor, keeping all other factors constant.

Highly Substitutable

Refers to goods or services that are readily replaced with alternatives by consumers due to minimal differences in characteristics or functionality.

Unit Costs of Production

The average cost incurred in producing one unit of a good, calculated by dividing the total cost of production by the number of units produced.

Related Resource

Assets or inputs that are connected or utilized together in the production process of goods or services.