The Dominant Portfolio with the Lowest Possible Risk Measures Is

question 4

Multiple Choice

The dominant portfolio with the lowest possible risk measures is:

• A) the efficient frontier.
• B) The minimum variance portfolio.
• C) The upper tail of the efficient set.
• D) The tangency portfolio.

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Definitions:

Consumption Function

An economic formula representing the functional relationship between total consumption and gross national income.

Aggregate Income

The total income earned by all individuals and entities within an economy.

Aggregate Consumption

The total amount of goods and services consumed in an economy within a given period.

Consumption Function

A mathematical expression describing the association between gross national income and the total amount spent on consumption.