Determine Which One of These Three Portfolios Dominates Another

question 113

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 7 percent and risk of 10 percent. The expected return and risk of portfolio Yellow are 13 percent and 10 percent; and for the Purple portfolio are 9 percent and 14 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.

---

Definitions:

Representative Sample

A sample that accurately reflects the characteristics of the population from which it is drawn, ensuring research findings are generalizable.

Random Sample

A sample drawn in such a way that every member of the population has an equal chance of being selected, leading to a representative subset.

"Hook Up" Culture

A societal pattern that accepts and encourages casual sexual encounters, including one-night stands and other related activity, without necessarily including emotional bonding or long-term commitment.

Random Sampling

A method of selecting a sample from a population in such a way that every individual has an equal probability of being chosen.