A (n) ________ portfolio maximizes return for a given level of risk, or minimizes risk for a given level of return.
A)efficient
B)profit maximizing
C)idiosyncratic
D)diverse
E)none of the above

Question

Quizplus · Accepted Answer

An efficient portfolio is one that maximizes returns for a given level of risk or minimizes risk for a given level of return. This means that it is the optimal combination of assets that provides the best possible return for the amount of risk that an investor is willing to take on.

A (N) ________ Portfolio Maximizes Return for a Given Level