In practice, one would generate efficient portfolios using
A)regression analysis.
B)quadratic programming.
C)a trial and error method.
D)a graphical method.

Question

Quizplus · Accepted Answer

Quadratic programming is the most common and efficient method used for generating optimal portfolios. It involves mathematical optimization techniques to find the portfolio that maximizes returns given a certain level of risk or minimizes risk given a certain level of returns. Regression analysis and graphical methods are not as reliable and may not be suitable for large portfolios. Trial and error methods are time-consuming and may not produce the most efficient portfolio.

In Practice, One Would Generate Efficient Portfolios Using