An efficient portfolio is defined as ________.
A) grouping of assets with same level of risk
B) collection of assets with the aim of maximizing the return
C) an investment in a single asset
D) grouping of assets with the highest possible correlation

Question

Quizplus · Accepted Answer

An efficient portfolio is a collection of assets that seeks to provide the highest possible return for a given level of risk. The portfolio is constructed using a combination of assets that have low or negative correlations with each other, which helps to reduce overall portfolio risk. The goal of an efficient portfolio is to provide the most effective use of investment capital, which can help to maximize returns over time.

An Efficient Portfolio Is Defined as ________