Which of the Following Statements Is Most Correct

question 33

Multiple Choice

Which of the following statements is most correct?

• A)An inefficient portfolio maximizes return for a given level of risk, or minimizes risk for a given level of return.
• B)A single asset is called a portfolio
• C)The goal of an inefficient portfolio is to minimize risk for a given level of return.
• D)Combining negatively correlated assets having the same expected return results in a portfolio with the same level of expected return and a lower level of risk.
• E)all of the above

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Definitions:

Controlled Observations

Observational research methods where variables are manipulated or controlled in order to investigate their effects on other variables.

Naturalistic Observations

A research method in which subjects are observed in their natural environment without any manipulation by the researcher.

Introspection

The study or monitoring of one's own thoughts and feelings.

Ecological Validity

The extent to which the findings of a study can be applied to and represent real-world settings and behaviors outside the context of the study itself.