An Efficient Portfolio Is Defined as ________

question 60

Multiple Choice

An efficient portfolio is defined as ________.

• A) grouping of assets with same level of risk
• B) collection of assets with the aim of maximizing the return
• C) an investment in a single asset
• D) grouping of assets with the highest possible correlation

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Definitions:

Proximity

The physical closeness or distance between people or objects, which can influence perceptions, attitudes, and behaviors.

Figure-ground

A visual perception principle that describes how humans separate an object (the figure) from its surrounding area (the ground).

Reversible Figures

Visual illusions that can be perceived in more than one way, switching between alternative interpretations of the same image.

Gestalt Principles

A theory in psychology suggesting that people naturally organize their perceptions according to certain patterns.