Which of these is the investor's combination of securities that achieves the highest expected return for a given risk level?
A) efficient portfolio
B) modern portfolio
C) optimal portfolio
D) total portfolio

Question

Quizplus · Accepted Answer

An optimal portfolio is the combination of securities that provides the highest expected return for a given level of risk or the lowest risk for a given level of expected return. It is a key concept in modern portfolio theory, aiming to maximize returns while minimizing risk.

Which of These Is the Investor's Combination of Securities That