Determine Which One of These Three Portfolios Dominates Another

question 29

Multiple Choice

Determine which one of these three portfolios dominates another. Name the dominated portfolio and the portfolio that dominates it. Portfolio Blue has an expected return of 14 percent and risk of 19 percent. The expected return and risk of portfolio Yellow are 15 percent and 18 percent; and for the Purple portfolio are 16 percent and 21 percent.

• A)Portfolio Blue dominates portfolio Yellow.
• B)Portfolio Yellow dominates portfolio Blue.
• C)Portfolio Purple dominates portfolio Blue.
• D)Portfolio Purple dominates portfolio Yellow.

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Definitions:

Cost Reimbursable Contract

A type of contract where the purchaser agrees to pay the supplier for actual costs incurred plus a fee or profit.

Fixed Fee

A pre-determined and agreed-upon total charge for a specific service or project, not subject to change based on the amount of time or resources used.

Critical To Project

Elements or factors that are essential for the successful completion of a project, without which the project cannot proceed or succeed.

Quality And Schedule Needs

The requirements concerning the standard of work to be delivered and the timeline for its completion in a project.