The Goal of an Efficient Portfolio Is to

question 69

Multiple Choice

The goal of an efficient portfolio is to

• A) maximize risk for a given level of return.
• B) maximize risk in order to maximize profit.
• C) minimize profit in order to minimize risk.
• D) minimize risk for a given level of return.

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Definitions:

Aversive Conditioning

A form of behavioral training in which an unpleasant or painful stimulus is associated with undesirable behaviors to discourage those behaviors.

Systematic Desensitization

A behavioral therapy technique used to reduce phobic responses through gradual exposure to the feared object or situation paired with relaxation exercises.

Free Association

A psychoanalytic technique in which a patient says whatever comes to mind without censorship as a way of uncovering the unconscious mind.

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, reinforcing certain behaviors and dissuading others.