You Want to Create a Two-Asset Portfolio

question 24

Multiple Choice

You want to create a two-asset portfolio. To have the best portfolio possible, you should select for the _________ portfolio.

• A) Highest beta
• B) Sharpe-optimal
• C) Highest return
• D) Sharpe-minimal
• E) Market equivalent

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Definitions:

Hyperadrenalism

A condition characterized by excessive production of hormones by the adrenal glands, which can lead to various health issues.

Circadian Rhythms

Biological processes that occur on a roughly 24-hour cycle, influencing patterns such as sleep-wake cycles and hormone release.

Antidiuretic Hormone

A hormone that helps to control the balance of water in the body by reducing the amount of urine produced by the kidneys.

Posterior Pituitary

The rear part of the pituitary gland that stores and releases hormones like antidiuretic hormone (ADH) and oxytocin, received from the hypothalamus.