A(n) ________ portfolio maximizes return for a given level of risk, or minimizes risk for a given level of return.
A) efficient
B) coefficient
C) continuous
D) risk-indifferent

Question

Quizplus · Accepted Answer

An efficient portfolio is one that maximizes return for a given level of risk or minimizes risk for a given level of return. It is considered the best portfolio because it provides the highest expected return for a given level of risk or the lowest risk for a given level of expected return. Coefficient, continuous, and risk-indifferent portfolios are not relevant in this context.

A(n) ________ Portfolio Maximizes Return for a Given Level of Risk