You Want to Create the Best Portfolio That Can Be

question 44

Multiple Choice

You want to create the best portfolio that can be derived from two assets. Which one of the following will help you identify that portfolio?

• A)highest portfolio beta
• B)market equivalent level of risk
• C)highest possible rate of return
• D)Treynor-minimal portfolio
• E)Sharpe-optimal portfolio

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Definitions:

Clutch Shaft

A component in a vehicle's transmission system that connects the clutch to the gearbox, transmitting power from the engine to the transmission.

Pilot Bearings

Bearings that guide and support the end of the transmission input shaft within the crankshaft.

Clutch Pack

Apply/release mechanisms that typically consist of clutch plates, friction discs, and a pressure plate. In a mechanical clutch pack, the pressure plate is mechanically applied. As a component within an automatic transmission, a pressure plate uses tabs that mate with grooves in the clutch drum and is applied hydraulically or electrically.

Clutch Pedal

A mechanical lever found in manual vehicles that the driver depresses to disengage the gearbox from the engine, allowing for gear changes.