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 statements is 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 return.

Which of the Following Statements Is Correct