- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 1. Portfolio Risk and Return: Part I
- Subject 6. Optimal Portfolio
CFA Practice Question
For a portfolio to be efficient, it must exhibit the ______.
B. highest expected return for a given level of risk
C. lowest risk for all levels of expected return
D. highest expected return for all levels of risk
A. highest risk for a given level of expected return
B. highest expected return for a given level of risk
C. lowest risk for all levels of expected return
D. highest expected return for all levels of risk
Correct Answer: B
Efficient portfolios give the highest possible return for any given level of risk or, alternatively, the lowest possible risk for any given level of return.
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