A Portfolio Is Considered to Be Efficient If

question 4

Multiple Choice

A portfolio is considered to be efficient if

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

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Definitions:

Passion

An intense positive emotion, which is usually related to entrepreneurs who are engaged in meaningful ventures, or tasks and activities, and which has the effect of motivating and stimulating entrepreneurs to overcome obstacles and remain focused on their goals.

Strong Ties

Deep, close relationships often characterized by trust, frequent interaction, and a strong sense of commitment.

Social Capital

Refers to the networks, relationships, and connections among people that can be leveraged for mutual benefit and to achieve goals.

Devil's Advocate

A person who expresses a contrary opinion or takes an opposing view, especially for the sake of argument or to explore different perspectives.