When Is a Portfolio Considered to Be Efficient

question 75

Multiple Choice

When is a portfolio considered to be efficient?

• A) When no other portfolio offers higher expected returns with the same risk.
• B) When no other portfolio offers lower risk with the same expected return.
• C) When there is no portfolio with a higher return.
• D) Choices a and b
• E) All of the above.

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Definitions:

Tax Subsidy

A grant in the form of reduced taxes through favorable tax treatment. For example, employer-paid health insurance is exempt from federal income taxes and payroll taxes.

Rising U.S. Health Care Costs

This term refers to the increasing expenditure on health care services in the United States, often attributed to factors like medical technology advancements, higher prices for services, and an aging population.

Part-time And Temporary Workers

Employees hired on a non-permanent or short-term basis, often working fewer hours than full-time positions.