Which of the following statements is correct?
A)A dominant portfolio has the best risk-return relationship as compared to other portfolios.
B)It is not necessarily true that when an investment achieves a high return that it is risky.
C)A low standard deviation means that the investment is less likely to achieve high returns, which means that it is more risky.
D)None of these choices are correct.

Question

Quizplus · Accepted Answer

A dominant portfolio is one that offers the best risk-return trade-off compared to other portfolios, meaning it provides the highest expected return for a given level of risk or the lowest risk for a given level of expected return.

Which of the Following Statements Is Correct