Which of the Following Statements Is Most Correct

question 135

Multiple Choice

Which of the following statements is most correct?

• A)An efficient portfolio maximizes return for a given level of risk, or minimizes risk for a given level of return.
• B)A collection of assets is called a portfolio
• C)The goal of an efficient 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:

Flexible Budget

A budget that adjusts or varies with changes in volume or activity levels.

Units

In business, units refer to the individual items or quantities of a product or service measured for sale, production, or inventory.

Revenue

The total amount of money generated by the sale of goods or services related to a company's primary operations.

Planning Budget

A budget that is prepared for a specific level of activity; it outlines the expected revenues and expenses associated with a planned activity level.