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:

Dynamometer

A device for measuring force, torque, or power. For example, in a clinical setting, it can measure the strength of different muscle groups.

Distraction-Conflict Theory

A theory suggesting that the presence of others can increase arousal and facilitate performance on familiar tasks but may hinder performance on complex tasks due to attentional conflict.

Evaluation Apprehension Model

A theory suggesting that anxiety about being evaluated by others can lead to increased or decreased performance depending on the individual and the context.

Social Facilitation

The tendency for individuals to perform better on simple or well-learned tasks in the presence of others than when alone.