The efficient set is determined by the principle of:
A) independence.
B) expected value.
C) dominance.
D) risk maximization.

Question

Quizplus · Accepted Answer

The efficient set is determined by the principle of dominance, where an investment is considered efficient if no other investment offers higher expected returns with the same or lower level of risk, or lower risk with the same or higher level of expected returns.

The Efficient Set Is Determined by the Principle Of