An Efficient Set of Portfolios Is

question 84

Multiple Choice

An efficient set of portfolios is:

• A) the complete opportunity set.
• B) the portion of the opportunity set below the minimum variance portfolio.
• C) only the minimum variance portfolio.
• D) the dominant portion of the opportunity set.
• E) only the maximum return portfolio.

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Definitions:

Savings Account

A bank account where money can be deposited to earn interest over time.

Deposited

The act of placing money into a financial institution or account for safekeeping or to earn interest.

Present Amount

The present value of an anticipated amount of money or series of cash flows, assessed by a predetermined rate of return.

Interest Rate

The percentage at which interest is paid by a borrower for the use of money that they borrow from a lender.