What Happens to Portfolios That Cannot Be Dominated

question 12

Multiple Choice

What happens to portfolios that cannot be dominated?

• A)They lie on the efficient frontier.
• B)They are minimum risk portfolios.
• C)They have low correlations.
• D)They have maximum expected returns.

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Definitions:

Common Myth

A widely held but false belief or idea that is accepted by many people without questioning.

Trade-offs

The compromises or sacrifices made when choosing one option over another, often involving conflicting objectives.

Strong Culture

An organizational environment characterized by shared beliefs and values that influence behavior and contribute to unity and cohesiveness.

Pluralistic View

An outlook or approach that acknowledges and embraces diversity, understanding that multiple perspectives exist and are valuable in society or an organization.