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Commerce · Q153

Financial Management

Graduate and Post Graduate · Commerce · question 153

Q153

The optimal portfolio is the efficient portfolio with the______________.

A.
lowest risk
B.
highest risk
C.
highest utility
Answer
D.
least investment

Answer: Option C

Solution

Answer: Option C
Solution:
The optimal portfolio is the efficient portfolio with the highest utility. Portfolio optimization is the process of selecting the best portfolio, out of the set of all portfolios being considered, according to some objective.