Recommendations & StrategiesPregunta 44 de 110
According to Modern Portfolio Theory, an efficient portfolio is one that:
a.Maximizes return without regard to risk
b.Contains only the single highest-returning asset
c.Offers the highest expected return for a given level of risk
d.Eliminates all risk entirely
Explicación
Modern Portfolio Theory, developed by Harry Markowitz, defines an efficient portfolio as one that provides the maximum expected return for a given level of risk, or the least risk for a target return. Such portfolios lie on the efficient frontier. Diversification, not a single asset, achieves this optimization.
Practica las 110 preguntas gratis — sin registro.
Preguntas relacionadas de este tema
- Diversification within a portfolio is primarily intended to reduce which type of risk?
- A strategic asset allocation approach is best described as which of the following?
- When gathering a client profile, which factor is essential to determining suitable recommendations?
- A younger investor with a long time horizon and high risk tolerance saving for retirement would most appropriately hold a portfolio weighted toward which of the following?
- Dollar-cost averaging involves which of the following?
- Which account type generally allows contributions of after-tax dollars with qualified withdrawals being tax-free in retirement?
Última revisión: · proceso editorial
Equipo Editorial de PrepPass · Verificado con NASAA Series 65 Investment Adviser Law Exam · Cómo revisamos