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 the statements are correct.

Question

Quizplus · Accepted Answer

A dominant portfolio is one that offers the best risk-return trade-off, meaning it provides the highest expected return for a given level of risk or the lowest risk for a given level of expected return.

Which of the Following Statements Is Correct