Which of the following statements is correct?
A) A dominant portfolio has the best risk-return relationship as compared to other portfolios.
B) When an investment achieves a high return it always has a high level of risk.
C) A low standard deviation means that the investment is less likely to achieve high returns, which means that it is more risky.
D) None of these choices are correct.

Question

Quizplus · Accepted Answer

A dominant portfolio is considered to have the best risk-return relationship among available portfolios, meaning it offers the highest return for a given level of risk or the lowest risk for a given level of return.

Which of the Following Statements Is Correct