One of the Reasons That It Is Extremely Difficult in Practice

question 3

Multiple Choice

One of the reasons that it is extremely difficult in practice to identify portfolios that are efficient is because

• A) we cannot measure the realized return and the standard deviation of a portfolio with great accuracy.
• B) we cannot measure the expected return and the standard deviation of a portfolio with great accuracy.
• C) we cannot measure the weighted average return and the standard deviation of a portfolio with great accuracy.
• D) we cannot measure the required return and the standard deviation of a portfolio with great accuracy.

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Definitions:

Authoritative-Reciprocal

Authoritative-reciprocal refers to a style of interaction, particularly in parenting or leadership, that is characterized by a balance of authority and responsiveness to feedback.

Authoritarian

A governing or leadership style characterized by absolute or blind obedience to authority, as against individual freedom and related to the expectation of unquestioning obedience.

Permissive

Describes a parenting style characterized by low demands with high responsiveness, where parents are lenient and often only intervene when necessary.

Disengaged

A term often used in psychology to describe a state where an individual is emotionally or cognitively disconnected from a task, activity, or social interaction.