The Dominant Portfolio with the Lowest Possible Level of Risk

question 13

Multiple Choice

The dominant portfolio with the lowest possible level of risk out of a set of portfolios comprised of two securities is referred to as the:

• A)efficient frontier.
• B)minimum variance portfolio.
• C)upper tail of the efficient set.
• D)tangency portfolio.
• E)risk-free portfolio.

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Definitions:

Economic Dominance

A situation where a company, product, or country has enough market power to influence market conditions or prices on a large scale.

Statutory Law

Laws and regulations enacted by legislative bodies at the federal, state, or local levels.

Judicial Precedent

A principle or rule established in a previous legal case that is binding or persuasive for a court when deciding subsequent cases with similar issues or facts.

Customs

The official department that administers and collects the duties levied by a government on imported goods, as well as the traditions and accepted practices within a society.