A Portfolio Is Efficient If and Only If the Expected

question 14

Multiple Choice

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

• A) average return
• B) weighted average return
• C) realized return
• D) required return

---

Definitions:

Collect Like Terms

An algebraic operation that entails amalgamating terms with the same variables to the identical power.

Simplify

The process of making something less complicated or easier to understand, often used in the context of mathematical expressions or procedures.

Evaluate

To determine or assess the significance, worth, or condition of something, usually in a detailed and analytical manner.

Calculate

The process of determining the numerical value or result, often by mathematical means.