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:

Unethical

Acting in a manner that is contrary to what is considered morally right or fair.

International Business

The practice of conducting trade, investment, and business operations that extend beyond the domestic borders of a country, engaging in global markets.

Actions

Measures or steps taken to achieve a particular goal.

Sustainable Business Practices

Practices that businesses adopt in order to minimize their environmental impact and ensure long-term sustainability.