When choosing portfolios of assets, management should try to achieve the highest possible return at a given level of risk.

Name: When choosing portfolios of assets, management should try to achieve the highest possible return at a given level of risk.
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This is the basic principle of portfolio management, known as the risk-return tradeoff. When constructing a portfolio, management aims to maximize returns while minimizing risk or achieving a desired level of risk for a given level of return.

When Choosing Portfolios of Assets, Management Should Try to Achieve