An Efficient Portfolio Is One That

question 81

Multiple Choice

An efficient portfolio is one that

• A) maximizes risk for a given level of return.
• B) maximizes return for a given level of risk.
• C) minimizes return for a given level of risk.
• D) maximizes return at all risk levels.

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Definitions:

Ratio Data

A type of quantitative data that not only offers order and equal intervals between values but also has a natural zero point, enabling ratios to be calculated.

Nominal Data

Data categorized into distinct groups without any inherent order or ranking among the categories.

Specified Measure

A particular metric or standard defined for the purpose of evaluation, assessment, or calculation within a given context.

Natural Zero

A point on a scale that indicates the absence of the quantity being measured, indicating a true zero point where the measured phenomenon is nonexistent.