Q686
For any or lower degree of risk, highest or any expected return are concepts use in
A.
risky portfolios
B.
behavior portfolios
C.
inefficient portfolios
D.
efficient portfolios
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
For any or lower degree of risk, highest or any expected return are concepts use in efficient portfolios. An efficient portfolio, also known as an 'optimal portfolio', is one that provides that best expected return on a given level of risk, or alternatively, the minimum risk for a given expected return.