Which of the following statements is most correct?
A)An inefficient portfolio maximizes return for a given level of risk,or minimizes risk for a given level of return.
B)A single asset is called a portfolio
C)The goal of an efficient portfolio is to maximize risk for a given level of return.
D)Combining positively correlated assets having the same expected return results in a portfolio with the same level of expected return and a lower level of risk.
E)none of the above

Question

Quizplus · Accepted Answer

None of the statements are correct.

A) an inefficient portfolio either maximizes risk for a given level of return or minimizes return for a given level of risk. 
B) A single asset cannot be called a portfolio by definition. 
C) The goal of an efficient portfolio is to maximize return for a given level of risk or minimize risk for a given level of return. 
D) Combining positively correlated assets with the same expected return results in a portfolio with the same level of expected return but a higher level of risk.

Which of the Following Statements Is Most Correct