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Basic Question 4 of 6
Investors seeking the highest possible return-to-risk tradeoff will hold the ______.
B. efficient portfolio with the highest return
C. efficient portfolio with the lowest return
A. lowest-risk portfolio possible
B. efficient portfolio with the highest return
C. efficient portfolio with the lowest return
User Contributed Comments 8
| User | Comment |
|---|---|
| aartis | Highest risk return trade off - Lowest risk portfolio |
| achu | Good question. |
| Vadik | Yeah, Good one |
| ravdo | suuuuuch a good question!!! |
| BigJimStud | Excellent question. |
| Allen88 | muy bueno question! |
| endurance | estrema domanda eccellente !! |
| Shaan23 | Whats odd. When you read in depth this answer seems it should include A as well In the text it says the efficient frontier is the line above the Global minumum variance portfolio(Just the top half of the efficient curve) by that definition that would include answer A(where the E(retun) is minimum |
I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
describe and interpret the minimum-variance and efficient frontiers of risky assets and the global minimum-variance portfolio
CFA® 2024 Level I Curriculum, Volume 2, Module 1.