You Are Graphing the Portfolio Expected Return Against the Portfolio

question 49

Multiple Choice

You are graphing the portfolio expected return against the portfolio standard deviation for a portfolio consisting of two securities. Which one of the following statements is correct regarding this graph?

• A)Risk-taking investors should select the minimum variance portfolio.
• B)Risk-averse investors should select the portfolio with the lowest rate of return.
• C)Some portfolios will be efficient while others will not.
• D)The minimum variance portfolio will have the lowest portfolio expected return of any of the possible portfolios.
• E)All possible portfolios will graph as efficient portfolios.

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Definitions:

Middle Age

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In psychoanalytic theory, the force or impulse that drives behaviors and processes in the human mind, originating from the id, ego, and superego.

Individuation Process

A concept in analytical psychology referring to the process by which an individual integrates the unconscious with their conscious mind, leading to the development of a unique personality.

Psyche

A term used to describe the human mind or soul, encompassing thoughts, feelings, and consciousness.