An efficient portfolio is
A) One selected by a certified portfolio adviser
B) An exchange-traded fund
C) A portfolio for which higher returns can be achieved only by accepting more risk
D) A portfolio of equally weighted domestic and foreign assets

Question

Quizplus · Accepted Answer

An efficient portfolio is one where higher returns can only be achieved by taking on more risk, according to the principles of modern portfolio theory. This concept is central to the efficient frontier, which illustrates the best possible return for a given level of risk.

An Efficient Portfolio Is