From the Concept of an "Efficient Frontier," the Point on a Frontier

question 55

Multiple Choice

From the concept of an "efficient frontier," the point on a frontier that is optimal for all firms:

• A) is the top point.
• B) is the point closest to the vertical axis.
• C) is the point half way between the two end points.
• D) cannot be determined since firms vary in their willingness to accept risk.

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Definitions:

Population Proportion

The fraction of a population that possesses a particular attribute or characteristic.

Margin of Error

A measure indicating the level of random sampling error present in the findings of a survey.

Confidence Interval

A set of numbers, coming from the statistics of a sample, which probably includes the value of a parameter from a population that is not known.

Sample Proportion

The fraction of the sample that represents a particular category or characteristic, often used to estimate the proportion in the larger population.