Which of the following statements is most correct?
A)An efficient portfolio maximizes return for a given level of risk, or minimizes risk for a given level of return.
B)A collection of assets is called a portfolio
C)The goal of an efficient portfolio is to minimize risk for a given level of return.
D)Combining negatively correlated assets having the same expected return results in a portfolio with the same level of expected return and a lower level of risk.
E)all of the above

Question

Quizplus · Accepted Answer

All the statements are correct. An efficient portfolio aims to maximize return for a given risk or minimize risk for a given return. A collection of assets is indeed a portfolio. Combining negatively correlated assets can reduce risk while maintaining expected return.

Which of the Following Statements Is Most Correct