The Efficient Set Theorem States That an Investor Will Choose

question 40

Multiple Choice

The efficient set theorem states that an investor will choose an optimal portfolio from the set of portfolios that offers the following two conditions:

• A) minimum expected returns for varying levels of risk and minimum risk for varying levels of expected returns
• B) maximum expected returns for varying levels of risk and minimum risk for varying levels of expected returns
• C) the same expected returns for varying levels of risk
• D) maximum expected returns at the same levels of risk and minimum risk for varying levels of expected returns

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