A Portfolio Is Efficient If and Only If ________ of Every

question 26

Multiple Choice

A portfolio is efficient if and only if ________ of every available security equals its ________.

• A) the required return; expected return
• B) the realized return; expected return
• C) the expected return; required return
• D) the required return; realized return

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Definitions:

Long-Term Debt

Borrowed money that is due for repayment more than one year into the future.

Financing Activities

Financing activities involve transactions between a company and its investors or creditors, affecting the equity and long-term liabilities on the balance sheet.

Depreciation Expense

An accounting method used to allocate the cost of a tangible asset over its useful life.

Operating Expenses

Costs associated with running a business's day-to-day activities, excluding the cost of goods sold, such as rent, utilities, and payroll.