A Portfolio Is Efficient If No Other Asset or Portfolios

question 42

True/False

A portfolio is efficient if no other asset or portfolios offer higher expected return with the same (or lower) risk or lower risk with the same (or higher) expected return.

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Definitions:

Industry Average

The mean performance metric, such as revenue growth or return on equity, of the companies in a particular industry or sector.

Receivables

Money owed to a business by its customers for goods or services that have been delivered but not yet paid for.

ACP

An acronym that needs specification to provide an accurate definition, as it can stand for many different things depending on the context.

Operating ROA

A profitability ratio that measures how efficiently a company utilizes its assets to generate operating income.