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:

Spontaneous Recovery

A phenomenon in psychology where previously extinguished responses reappear after a period of no exposure to the conditioned stimulus.

Spontaneous Recovery

The reappearance of a conditioned response after a period of apparent extinction or reduction in strength.

Extinction

In behavior psychology, the process through which a conditioned response decreases or disappears after repeated exposure without the unconditioned stimulus.

Guilty But Mentally Ill

A legal verdict indicating that the defendant is guilty of the charges but was suffering from mental illness at the time of the crime.