The goal of an efficient portfolio is to
A) minimize risk for a given level of return.
B) maximize risk in order to maximize profit.
C) minimize profit in order to minimize risk.
D) maximize risk for a given level of return.

Question

Quizplus · Accepted Answer

The goal of an efficient portfolio is to minimize risk for a given level of return. This means that the portfolio is optimized to provide the best possible returns while minimizing the amount of risk taken on by the investor. It is important to note that minimizing risk does not necessarily mean eliminating risk entirely, as all investments carry some level of risk.

The Goal of an Efficient Portfolio Is to