An efficient portfolio is one that ________.
A) guarantees a predetermined rate of return
B) maximizes return for a given level of risk
C) consists of a single asset, which gives maximum return
D) maximizes return at all risk levels

Question

Quizplus · Accepted Answer

An efficient portfolio maximizes the return for a given level of risk. It does not guarantee a predetermined rate of return or consist of a single asset but rather achieves the maximum return at all risk levels. Therefore, option B is the best choice.

An Efficient Portfolio Is One That ________